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Crude Oil: Trend Up?

Published 06/02/2017, 09:19
Updated 09/07/2023, 11:32

Crude Oil Daily Chart

Last time two months ago I had the opportunity to push the bullet point above into full bullish and I’m grateful to say the market did just that and we rose up through the then 2016 high resistance at 51.92 and all the way up to 55.23. Since then, we have dawdled. That may be simplistic, but we have been trading within a range 50.25 – 55.25 on the wide and 50.70 – 54.35 on the narrow…with a few exceptions speedily dealt with.

It would be easy to call it neutral and even mildly bullish on the bullet point above because three out of four MAs are heading north. However, I think there may be an another action going on…a market ammunition build-up excercise with what initially appears to be a bullish ascending triangle and with resistance on similar tops around 54.38(dynamic) and rising lows currently at 51.53(dynamic). However, it now it appears to be an AT at the moment. The one thing I am relatively certain of is the build-up of potential for when it finally goes. As I say, more likely at this time to be up than down.

Support apart from previously mentioned levels is at 52.24, 50.91, 50.71, 50.25, 49.09 and the key recent 50% Fib at 48.71…if this is take out consecutively then the AT pattern is out.

Resistance apart from the previously mentioned levels is at 54.08, 56.49, 56.82 and 59.67. So with all this in mind, I will after all move the bullet point above into mildly bullish but I won’t give a target for the AT…it could after all turn into a rounded or multiple top affair and I’m not too certain at this time on the veracity of this move higher.

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