Shaking the tree27 Oct 2020 18:47
IMO this is a typical tree-shake:) Big boys shorting the oilies are not looking for pennies in profits, hence at these levels the degree of imposed risk(s) to the upside, outweighs any potential gains (for shorters), to the downside. The pain from now on will be to the upside and with any meaningful rise or rally, there will be a significant fear trade. IMO shorters are not the villains. Ask yourself, if you had a billion would you short BP/Shell/Equinor at these levels, and why?
Today's price action looked like a typical whale (whether shorts closing or new larger buyers stepping in) buying, triggering all the stops to increase the volume buying.
The weekly chart is just about to complete its divergence formation. Of course, we need a validation, but the SP has the calendar in its favor; end of the month pension buying pressure + ex-div (5th Nov) next week.
The first resistance target to be tested is 223.
DYOR and invest/trade what you can afford.
AB