DarthTrader
Diamond Member
- Mar 29, 2022
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- #1
The Dollar and Oil are in a battle against each other. An example of the crisis is that the USD has not been this low against oil EVEN during the 1970s oil crisis. The only time it's been lower was 2008, and we are near that bottom now.
So something has to break, and I'm of the opinion that the US will not allow its USS Dollar to be broken against the shoals of the Oil Sea.
This violent trading period of oil is why I think it hit a top against the Dollar.
As you can see, intraday, the Dollar had massive bullish take out of proceeding day's "down day". There's huge demand for dollars which I think actually is because Big Money bought dollars on loan to buy this "dip" in the bear market ahead of a post-FED bear rally. But that's out of the scope of this thread.
This blown off top pattern on such large volumes shows us something. That Oil broke against the dollar and that when it tried to rally it got stuck.
It broke off a support level that became a resistance level. Big buyers no longer are buyers, they are sellers.
You see that exact pattern when this cross over takes place....
Here's 7th december 2020 which is the cross over for the Uranium bull market, where resistance turned into support (the thick orange dashed line). It's not as clean as Oil, but oil is a much bigger/liquid market.
So while this isn't exactly a bet I'd take, it's interesting to note, and I wanted to mention it as a possibility to see what happens. It's relative to the dollar, so what matters is if the dollar keeps strengthening and does oil just "flat line".
So something has to break, and I'm of the opinion that the US will not allow its USS Dollar to be broken against the shoals of the Oil Sea.
This violent trading period of oil is why I think it hit a top against the Dollar.
As you can see, intraday, the Dollar had massive bullish take out of proceeding day's "down day". There's huge demand for dollars which I think actually is because Big Money bought dollars on loan to buy this "dip" in the bear market ahead of a post-FED bear rally. But that's out of the scope of this thread.
This blown off top pattern on such large volumes shows us something. That Oil broke against the dollar and that when it tried to rally it got stuck.
It broke off a support level that became a resistance level. Big buyers no longer are buyers, they are sellers.
You see that exact pattern when this cross over takes place....
Here's 7th december 2020 which is the cross over for the Uranium bull market, where resistance turned into support (the thick orange dashed line). It's not as clean as Oil, but oil is a much bigger/liquid market.
So while this isn't exactly a bet I'd take, it's interesting to note, and I wanted to mention it as a possibility to see what happens. It's relative to the dollar, so what matters is if the dollar keeps strengthening and does oil just "flat line".
