European investors were disappointed with the ECB's actions overnight, despite President Draghi's apparent clearing of the way for a fully fledged QE program by year end. However, US trading, after initially following the negative leads, reversed direction and erased losses. And the seeming rise in risk appetite saw oil markets emphatically reject a break through key support:
The ten minute chart illustrates the reversal. However, the daily charts shows why this is so important:
This strong rejection of lows could be highly significant. Note the divergence between the lower lows of the oil price and the higher lows on the RSI.
Every trader has their own aims in the market. One of my trading goals is to identify trend changes as early as possible. The rejection and divergence, combined with proximity to the key support, offer my trading plan an opportunity: