Market Overview: Crude Oil Futures
The month-to-month chart is forming a Crude Oil wedge bear flag. The bulls might want to create a follow-through bull bar closing above the 20-month EMA to extend the percentages of the bull leg starting. The bears need a retest of the December low from a wedge bear flag (Dec 26, Jan 29, Mar 1) and hope that the 20-month EMA will act as resistance.
Crude oil futures
The Month-to-month crude oil chart
- The February month-to-month Crude Oil candlestick was a bull bar closing in its higher half and above the 20-month EMA.
- Last month, we mentioned that the market is in a good buying and selling vary. Poor follow-through and reversals are the hallmarks of a buying and selling vary.
- The market traded briefly decrease earlier within the month adopted by sideways to up for the remainder of the month consolidating across the January excessive space.
- Beforehand, the bears bought a reversal from a double prime bear flag with the November 2022 excessive and a decrease excessive main pattern reversal.
- They see the market as forming a bigger buying and selling vary and January and February merely as a pullback.
- They need a second leg sideways to down and a retest of the December low from a wedge bear flag (Dec 26, Jan 29, Mar 1).
- They hope the 20-month EMA will act as resistance.
- The bulls see the pullback (Sept to Dec) merely as a deep pullback and hope to get a retest of the September excessive.
- They need a reversal from a better low main pattern reversal (December) and a double backside bull flag (Might 4 and Dec 13).
- They need the 20-month EMA or the bull pattern line to behave as help.
- The bulls might want to create a follow-through bull bar closing above the 20-month EMA to extend the percentages of the bull leg starting.
- Since February was a bull bar closing in its higher half, it’s a purchase sign bar for March.
- The prior three candlesticks (Dec to Feb) are principally overlapping one another. The market is in a good buying and selling vary with a slight slope up.
- Poor follow-through and reversals are the hallmarks of a buying and selling vary.
- The market was beforehand buying and selling within the decrease third of the buying and selling vary which is the purchase zone of buying and selling vary merchants. It’s now buying and selling close to the center of the massive buying and selling vary.
- Merchants will BLSH (Purchase Low, Promote Excessive) till there’s a breakout from both course with sustained follow-through shopping for/promoting.
- Facet observe: The battle within the Center East may cause power costs to stay risky particularly if it escalates additional.
The Weekly crude oil chart
- This week’s candlestick on the weekly Crude Oil chart was an out of doors bull bar closing in its higher half.
- Last week, we mentioned that the sideways to up pullback section could have ended if the bears can create follow-through promoting closing beneath the 20-week EMA.
- The market traded barely decrease earlier within the week however reversed increased for the remainder of the week. The bears weren’t in a position to get a follow-through bear bar.
- The bears see the latest sideways to up pullback as forming a wedge bear flag (Dec 26, Jan 29, Mar 1).
- They need the 20-week EMA and the bear pattern line to behave as resistance. Nonetheless, the market is at the moment buying and selling additional away from the 20-week EMA.
- They need one other leg right down to retest the prior leg low (Dec 13) and the buying and selling vary low (Might low) after the present pullback.
- They may want a robust promote sign bar earlier than merchants might be keen to promote extra aggressively.
- The bulls see the selloff to the December 13 low merely as a bear leg inside a buying and selling vary.
- They need a reversal from a better low main pattern reversal (Dec 13), a wedge bull flag (Oct 6, Nov 16, and Dec 13) and a small double backside bull flag (Jan 13 and Feb 5).
- They might want to create sustained follow-through shopping for above the 20-day EMA and the January excessive to extend the percentages of the bull leg starting.
- If the market trades decrease, they need a reversal from a wedge bull flag with the primary two legs being January 3 and February 5.
- Since this week’s candlestick is a bull bar closing close to its excessive, it’s a purchase sign bar for subsequent week.
- For now, odds barely favor the market to nonetheless be within the sideways to up pullback section.
- Merchants will see if the bulls can create follow-through shopping for buying and selling far above the January excessive. In the event that they do, the percentages can swing in favor of the bull leg starting.
- Crude Oil is at the moment in an 82-week buying and selling vary. Merchants will BLSH (Purchase Low, Promote Excessive) till there’s a breakout with sustained follow-through shopping for/promoting from both course.
- Poor follow-through and reversals are the hallmarks of a good buying and selling vary.
- The market was beforehand buying and selling within the decrease third of the buying and selling vary which is the purchase zone of buying and selling vary merchants. It’s now buying and selling close to the center of the massive buying and selling vary.
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