Market Overview: Crude Oil Futures
The market shaped a weekly Crude Oil wedge bull flag. The bulls desire a breakout and a measured transfer primarily based on the peak of the tight buying and selling vary. The bears need the bear development line or the 20-week EMA to behave as resistance. If the market trades larger, they need the market to kind a decrease excessive and the highest of the triangle to behave as resistance.
Crude oil futures
The Weekly crude oil chart
- This week’s candlestick on the weekly Crude Oil chart was a giant bull bar closing close to its excessive and above the 20-week EMA.
- Final week, we mentioned the market could commerce at the very least a bit of decrease. Merchants would see if the bears may create a breakout beneath the wedge bear flag (Oct 24, Nov 7, and Nov 22) or if the market would proceed to commerce throughout the 8-week tight buying and selling vary.
- The market continues to commerce throughout the 8-week tight buying and selling vary. The bears weren’t in a position to create a breakout beneath the wedge bear flag.
- 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 13).
- They need the bear development line or the 20-week EMA to behave as resistance.
- If the market trades larger, they need the market to kind a decrease excessive and the highest of the triangle to behave as resistance.
- The bulls see the present transfer as a three-legged pullback – a wedge bull flag (Oct 29, Nov 18, and Dec 6) and desire a reversal to retest the highest of the triangle.
- They should create a follow-through bull bar breaking out above the wedge bull flag to extend the percentages of testing the highest of the triangle.
- They need a breakout and a measured transfer primarily based on the peak of the tight buying and selling vary.
- Since this week’s candlestick is a bull bar closing close to its excessive, it’s a purchase sign bar for subsequent week.
- The market could commerce at the very least a bit of larger.
- 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 throughout the 8-week tight buying and selling vary?
- 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 center of the buying and selling vary is an space of steadiness and a magnet.
- The decrease third of the massive buying and selling vary could be the purchase zone of buying and selling vary merchants.
- The tight buying and selling vary additionally signifies that the market is in breakout mode. Merchants will watch for a robust breakout from both course with sustained follow-through shopping for or promoting and commerce within the course of the breakout.
- The market is in a big buying and selling vary (Trading vary excessive: September 29, Trading vary low: Could 4).
- Merchants will BLSH (Purchase Low, Promote Excessive) till there’s a breakout from both course with sustained follow-through shopping for/promoting.
The Day by day crude oil chart
- The market traded sideways to up for the week closing above the 20-day EMA.
- Final week, we mentioned the market could commerce at the very least a bit of decrease. Merchants would see if the bears may create follow-through promoting, breaking beneath the Low 4 sample or if the market would proceed to cut sideways throughout the tight buying and selling vary as an alternative.
- The market continues to cut sideways throughout the tight buying and selling vary.
- 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 measured transfer primarily based on the peak of the tight buying and selling vary.
- The bears desire a retest of the October and September lows adopted by a breakout beneath the underside of the triangle.
- They hope that this week was merely a pullback forming 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 the market to kind a decrease excessive and the highest of the triangle to behave as resistance.
- Thus far, the candlesticks within the final 8 weeks have plenty 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.
- For now, merchants will see if the bulls can create follow-through shopping for breaking above the November 7 excessive.
- Or will the market proceed to cut sideways throughout the tight buying and selling vary as an alternative?
- The decrease third of the massive buying and selling vary could be the purchase zone of buying and selling vary merchants.
- The center of the buying and selling vary 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 watch for a robust breakout from both course with sustained follow-through shopping for or promoting and commerce within the course of the breakout.
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