Domistock Tools Used:
Assets charted: Crude Oil (Clc1)
Oil has gotten seriously deflated and has upward potential. That is what DomiStock analysis show and here is why:
1) The 68 – period long downward Dominant signal is the second longest since 2009. That’s a sign of extreme pessimism and of oversupply.
2) When tested in January, DomiStock’s automatically drawn support at 26.19 caused an upturn. (This second test could be the beginning of double bottom formation).
3) Oil’s price has been called deflated by DomiStock.
4) The 35%, 2-day Resultant direction line of the Max Profit Loss Calculator has turned positive indicating a scaling down of the supply forces in the short term
5) The close position indicator is in deflated – zone territory.