Oil selloff

Obama vs. the OIL – Part 2

On the last time at this fight, Obama won. What will happen this time?

I think that Obama will win again, and I will explain why.

The first things you need to know, is that we are in a cycle zone. To prove that, here is a weekly chart, and you can see what happens normally in the summer period, or to be more specific, pay attention to August month.

Now we are in August….

The second thing is – Elections period. One of Obama’s biggest achievements is that he reduced the oil prices despite the issues with Iran.

Now, before the elections, he will do all he can, to keep it as low as possible.

That’s the daily chart:

We can see that we have a bearish divergence on the daily chart, which means that very soon this push up will end, and we will see the oil turn around.

My opinion is that the current bullish move is fake.

Enjoy your day and good luck

Yours,

Vladimir Ribakov