Market Overview: Crude Oil Futures
The market fashioned a weekly Crude Oil inside bar closing close to its excessive. The bulls must create a powerful breakout above the November 7 excessive to extend the percentages of a measured transfer up primarily based on the peak of the tight buying and selling vary. The bears desire a retest of the October/September lows and the underside of the triangle from a wedge bear flag (Nov 7, Nov 22, and Dec 16).
Crude oil futures
The Weekly crude oil chart
- This week’s candlestick on the weekly Crude Oil chart was an inside bull bar closing close to its excessive and above the 20-week EMA.
- Final week, we mentioned that merchants would see if the bulls may create a breakout above the wedge bull flag (Oct 29, Nov 18, and Dec 6) and take a look at the highest of the triangle. Or if the market would proceed to cut sideways and take a look at the underside of the tight buying and selling vary as a substitute.
- The market continued to commerce sideways and the bears couldn’t create follow-through promoting.
- The bears desire a retest of the October/September lows and the underside of the triangle from a wedge bear flag (Nov 7, Nov 22, and Dec 16).
- They need the highest of the tight buying and selling vary or the 20-week EMA to behave as resistance.
- If the market trades larger, they need a decrease excessive and the highest of the triangle to behave as resistance.
- The bulls see the market forming a wedge bull flag (Oct 29, Nov 18, and Dec 6) and desire a breakout to retest the highest of the triangle.
- They should create a powerful breakout above the November 7 excessive to extend the percentages of a measured transfer up primarily based on the peak of the tight buying and selling vary.
- The market stays in a good buying and selling vary within the final 10 weeks.
- Whereas we might even see a breakout try quickly (maybe above the tight buying and selling vary first), till there’s a breakout, there isn’t any breakout.
- For now, merchants will see if the bulls can create a breakout above the wedge bull flag (Oct 29, Nov 18, and Dec 6) and take a look at the highest of the triangle.
- Or will the market proceed to cut sideways and take a look at the underside of the tight buying and selling vary as a substitute?
- The market has been buying and selling sideways with overlapping candlesticks, poor follow-through and frequent reversals which suggests the market is in a good buying and selling vary.
- The tight buying and selling vary additionally signifies that the market is in breakout mode. Merchants will look forward to a powerful breakout from both course, with sustained follow-through shopping for or promoting and commerce within the course of the breakout.
- The market is buying and selling across the center of the buying and selling vary which is an space of steadiness and a magnet.
- The decrease third of the massive buying and selling vary may be the purchase zone of buying and selling vary merchants.
- Merchants will BLSH (Purchase Low, Promote Excessive) till there’s a breakout from both course with sustained follow-through shopping for/promoting.
The Each day crude oil chart
- The market traded sideways to up for the week above the 20-day EMA.
- Final week, we mentioned that merchants would see if the bulls may create a retest and a breakout above the tight buying and selling vary, or if the market would proceed to cut sideways and take a look at the underside of the tight buying and selling vary as a substitute.
- Up to now, the market is testing close to the highest of the tight buying and selling vary however there isn’t any breakout but.
- The bulls see the present transfer forming a wedge bull flag (Oct 19, Nov 18, and Dec 6).
- They need a breakout above the tight buying and selling vary to retest the highest of the triangle and the October 8 excessive.
- They need a powerful breakout adopted by a measured transfer primarily based on the peak of the tight buying and selling vary.
- The bulls must create a breakout with follow-through shopping for to point out they’re in management.
- The bears desire a retest of the October and September lows adopted by a breakout under the underside of the triangle.
- They need the market to reverse decrease from a bigger Low 4 promote setup.
- They need the highest of the tight buying and selling vary and the bear development line to behave as resistance.
- If the market trades larger, they need a decrease excessive and the highest of the triangle to behave as resistance.
- Up to now, the candlesticks within the final 10 weeks have a number of overlapping ranges which signifies tight buying and selling vary value motion.
- Poor follow-through and reversals are hallmarks of a buying and selling vary.
- The shopping for strain because the December 6 low seems barely stronger (consecutive bull bars, bigger bull our bodies and shutting close to their highs) as in contrast with the promoting strain (bear bars with restricted follow-through promoting).
- For now, merchants will see if the bulls can break above the tight buying and selling vary with follow-through shopping for.
- Or will the market proceed to cut sideways and take a look at the underside of the tight buying and selling vary as a substitute?
- Till there’s a breakout, there isn’t any breakout.
- The decrease third of the massive buying and selling vary may be the purchase zone of buying and selling vary merchants.
- The market is buying and selling across the center of the buying and selling vary which is an space of steadiness and a magnet.
- Merchants will BLSH (Purchase Low, Promote Excessive) till there’s a breakout from both course with sustained follow-through shopping for/promoting.
- The tight buying and selling vary additionally signifies that the market is in breakout mode. Merchants will look forward to a powerful breakout from both course with sustained follow-through shopping for or promoting and buying and selling within the course of the breakout.
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