Just as predicted from our previous posts, UMWOG rebounded finally,
38.2% Fibo retracement was indeed proven to be a very solid support for a rebound. Furthermore, the selling today has eased in the afternoon due to T4 force selling in the morning session. So, coming Monday, no more force sellings so the only way for it to go is upwards!
Reasons for the continuous upwards rally coming Monday:
- It has formed a hammer candlestick, one of the most powerful bullish trend reversal patterns
- Also it is breaking out from a flag pattern.
- The rounding bottom big picture is still in place. Parabolic upwards trend to continue.
- Both Brent and WTI ended the week with a "BANG" at 69.81 and 64.3 respectively. Candlesticks are hammer and a solid white body respectively, a bullish reversal pattern from a bearish shooting star the day before, suggesting that the oil bulls will continue charge coming Monday!
Buyers outweighs sellers across all tiers at the Volume Distribution Chart, and the overall buying volume today exceeds yesterday's volume, suggesting a strong rebound is in place.