Yesterday I was talking to a friend, he was giving his view on Crude oil price.

“US crude oil now at 3 years low, oil price will go further down. Saudi Arabia price cut. Oil price affect stock market..etc”

I certainly do not process a crystal ball to see the future but I look at chart to tell me the story.

Let me share with you the charts and invite your comments.

Weekly Chart of Crude Oil:

Crude oil price has been out of the low channel. It is way over sold.

MACD Histogram has tick up.

Daily Chart of Crude oil:

I see a bullish divergence on the daily chart.

Crude oil price is making lower price but MACD histogram is shallow.

In summary, We might be seeing a bottom of crude oil but I might be wrong.

Before i sign off, I think stock counter that are related to Oil & Gas are worth to take a look.

Keppel Corp, Sembcorp Marine & Rex Intl.

Keppel Corp current price of $9.22 is at Year 2012 low.

Sembcorp Marine current price of $3.37 is at Year 2012 low.

Rex intl current price of $0.42, all time low is 0.395.

Best Wishes,

Divergence Trader Francis

Disclaimer: This blog is created for the sole purpose of education, discussion and knowledge sharing. All charts and information can be obtained freely from the internet. All analysis are based on my own personal view and years of experience. It should not be used as a decision to solicit buy/sell activity. Use all information at your own discretion and practice due diligence.

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