Expect $60 barrels of oil in the near future, says technical analysis from Barclays Capital. The price of oil is above the “Ichimoku cloud” for the first time since mid-July so, Barclays expects prices to keep trending upward.
Yesterday the price of oil was flat, which is in line with what Barclays calls a stair step ascent. The price lifts, it’s flat for a bit, then it lifts again and so on.
Ichimoku Kinko Hyo is a technical indicator published over 30 years ago in Japan. It measures market momentum and trend and also outlines levels of support and resistance. Ichimoku means ‘one look’ in Japanese and this reflects the indicators intent to measure multiple aspects of the market at once. This indicator was developed so that a trader can gauge an asset’s trend, momentum and support and resistance points without the need of any other technical indicator.
Ichimoku Kinko Hyo works best on longer term timeframes, such as the daily and weekly. The Ichimoku indicator consists of five lines.The calculation for four of these lines involves taking only the midpoints of previous highs and lows, similar to moving average studies.
This indicator was developed so that a trader can gauge an asset’s trend, momentum and support and resistance points without the need of any other technical indicator.
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