The DeM (DeMarker) Indicator is currently in oversold territory under 0.3. On the chart we can see an interesting correlation between the indicator and the price of the black gold. When DeM falls in undersold territory and couldn't revert back above 0.3 quick enough, this is very negative.
Currently, the formation reminds of that back in July 2015 and if we don't see a reversal above in the days to follow, this might send the Oil under bear's control.
Additional grounds for short positions are given from the breach and maintain of the price under 200 SMA and SMA 50's negative trajectory, which creates a likelihood of future "deadly crossover" ( when SMA 50 crosses SMA 200)
Fundamentally speaking, there are many preconditions for the price to increase ( OPEC agreement and positivism in anticipation of Trump's reforms), but they are connected and unknown. U.S. stocks data also signaled the likely market saturation. The development of technology in the extraction of black gold also supports the likelihood of a low-cost and decrease in price.
Breach under $47,00 per barrel might unlock a series of short positions
Trader Nikolay Georgiev
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