Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Oil & Gas Stock Index (XOI) - New Pattern Forming »» Weekly Summary Analysis
By: Marty Armstrong | January 1, 2021

At this time, the Oil & Gas Stock Index closed today at 79248. Presently, this market has been declining for 2 years going into 2021 reflecting that this has been only still a bearish reactionary trend.

Up to now, we still have only a 2 month reaction rally from the low established during October. We must exceed the 3 month mark in order to imply a trend is developing.

While the historical perspective of the of this market included a decline from the major high established back in 2014 moving into a major low in 2020, the market has bounced back for the last year. The last Yearly Reversal to be elected was a Bearish at the close of 2020. However, where there was 1 reversal elected, there was also a Super Position which took place with 2 Bullish Reversals elected warning that this immediate signal has been negated by the opposite force.

This market is still holding neutral on the yearly level of our indicating models trading between overhead system resistance and underlying support. It remains in a bearish position on the quarter models warning it is not breaking out to the upside right now. The monthly is negative for now and the short-term weekly is positive. The market has bounced making a new high on the monthly level during December yet on the weekly level the market has fallen back to penetrate the previous week's low.

From a perspective using the indicating ranges on the Daily level in the Oil & Gas Stock Index, this market remains moderately bullish currently with underlying support beginning at 79219 and overhead resistance forming above at 80851. The market is trading closer to the support level at this time. An opening above this level in the next session will imply a decline is unfolding.

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 rally thus far reaching this week 80920.Interestingly, the Spain IBEX 35 Cash has been in a bullish phase for the past 9 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.

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