MTECHTIPS Cool Cat Bounce

MTECHTIPS Cool Cat Bounce

Another week begins with a fresh round of calls that the oil bottom is in. As I’ve said each time oil prints a single daily bullish candle and the headlines roll through my stream, zero technical damage has been done to the chart. This is a small bounce in a BIG bear market. Just make sure you continue to see it for what it is.Not a single reclaiming of a swing high and price still capped by major trend line resistance no matter which way you draw it. With three central bank decisions on the cards this week (US, NZ and Japan), it is the RBNZ that is most likely to move. Following last week’s CPI miss, talk of further rate cuts has intensified and a surprise move here actually wouldn’t be that much of a surprise As for the Bank of Japan, with the improving appetite for traders to take positions in risk currencies (at least for 1 day), the ‘safe haven trade’ in the Japanese Yen could be somewhat unwound which would see USD/JPY rally.