InvestorsHub Logo
Followers 689
Posts 143817
Boards Moderated 35
Alias Born 03/10/2004

Re: DiscoverGold post# 5032

Saturday, 12/26/2020 10:47:15 AM

Saturday, December 26, 2020 10:47:15 AM

Post# of 10922
Oil & Gas Stock Index (XOI) - Moving Lower »» Weekly Summary Analysis
By: Marty Armstrong | December 26, 2020

The Oil & Gas Stock Index closing today at 79440 is immediately trading down about 37% for the year from last year's settlement of 127055. Immediately, this market has been declining for going into 2020 reflecting that this has been only still a bearish reactionary trend. As we stand right now, this market has made a new low breaking beneath the previous year's low reaching thus far 44312 while it even trading beneath last year's low of 112048.

Up to now, we still have only a 1 month reaction rally from the low established during October. We must exceed the 3 month mark in order to imply a trend is developing.

The historical perspective in the Oil & Gas Stock Index included a rally from 2003 moving into a major high for 2014, from which the market has been in a bearish trend since then moving into the low in 2016 forming a reactionary trend of 2 years bottoming at 86847. Nonetheless, we have not elected any Yearly Bearish Reversal to date from the turning point of 01/01 from 2014, which tends to warn that the 2014 high could still be challenged until we elect a Yearly Bearish Reversal. Nonetheless, the bounce since the 2016 low has been unable as yet to make any new high. Prominently, we have elected two Bullish Reversals to date. The last Yearly Reversal to be elected was a Bearish at the close of 2018.

Solely focusing on only the indicating ranges on the Daily level in the Oil & Gas Stock Index, this market remains neutral with resistance standing at 79892 and support forming below at 78912. The market is trading closer to the resistance level at this time.

On the weekly level, the last important high was established the week of December 7th at 85893, which was up 6 weeks from the low made back during the week of October 26th. We have seen the market drop sharply for the past week penetrating the previous week's low and it closed beneath that low which was 79892. This was a very bearish technical indicator warning that we have a shift in the immediate trend. We are still trading neutral on the Weekly Momentum Indicators and this is a warning that initial support has been breached. This strongly implies we should pay close attention now to the Weekly Bearish Reversals. If we begin to elect Weekly Bearish Reversals, then we are dealing with a more sustainable near-term correction.

Interestingly, the Spain IBEX 35 Cash has been in a bullish phase for the past 8 months since the low established back in March.

Some caution is necessary since the last high 95630 was important given we did obtain four sell signals from that event established during June. That high was still lower than the previous high established at 129844 back during January. This warns that the trend is weak moving forward. Nevertheless, at this time, the market is still weak.



DiscoverGold

Click on "In reply to", for Authors past commentaries

Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold