Farmer @ Johnsongrass, TX said:
EIA weekly inventory report shows a 1.7 million barrel draw. If the admin hadn't dumped 3.6 million barrels on the oil market last week, the inventory report would have shown a 5.3 million barrel draw. Gasoline and distillates were flat. EIA is showing an increase in products supplied for the week.
I have a lot of commentary for this and I'll save it. S&D's,....figures can lie and liars can figure, but if you torture the data long enough it's bound to confess. .... Houston, we have a problem....a 24 month problem likely.
Beer candles are on daily strong downward trend for crude but with declining volume.
On the weekly, we have a previous downtrend resuming.
But switch to monthly view and current month is an indecision candle. Almost guarantees November is either chop or start of upward trend. An indecision candle is a candle with wicks on both sides. Since beer candles represent the average of a period, with the opening at the middle point of the previous candle, the top being the high, the bottom being the low, and the close being the average of the open, high, low, and close price, trends become very apparent. A double wick shows that there was no predominant trend for that specific candle. That is why I call it an indecision candle. It can lead anywhere. So we need to use context clues. If it occurs DURING a strong downtrend and not surrounded by other indecisive candles or trend reversal candles, it's very likely that the trend is either slowing or ending outright. And since we are approaching the 50% level of the previous major uptrend, I would think support is found either there or earlier.
I'd be out all O&G related shorts by end of month. I'd be looking for confirmation of a bottom and ready to engage upward on a new trend.
“Give it hell Heinekandle, I’m enjoying it.”
- Farmer @ Johnsongrass, TX
“No secure borders, no alpha military, no energy independence, no leadership and most of all no mean tweets - this is the worst trade I’ve ever witnessed in my lifetime. ***Put that quote in your quote/signature section HeinendKandle*** LOL!”
- also Farmer @ Johnsongrass, TX (obviously in a worse mood)