The chart can explain what happened but it has limitations in predicting the future.
Let us not forget that price is the meeting point between demand and supply.
If the demand is going down together with supply (from Baker Hughes’ reported falling oil rig count), it is possible that price continue to fall should the demand be weakening against falling production.
From the CMF, there is still more selling than buying volume and thus, the current fall may not be over.
There can be some short rallies but not necessary leading to higher highs. However, black swan events can change these quickly.
This is the beauty of investing.
This is why investing in great companies with a healthy margin of safety over a longer time frame makes good sense.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
47
Report
Login to post
No comments yet