Crude Oil Technical Outlook:
- Oil worth shifting greater inside channel, however momentum weak
- Channel might flip right into a bear-flag with the correct worth motion
For an intermediate-term basic and technical viewpoint, see the Crude Oil Forecast.
Oil worth shifting greater inside channel, however momentum weak
Since bottoming in early October, oil has been a little bit of a large number because it tries to realize footing and attempt to reverse the down-move that unfolded throughout September. The overlapping worth motion over the previous month suggests that we are going to finally see one other leg decrease, validating the channel as a worthy bear-flag.
However for that to occur we might want to see the decrease parallel break, first, earlier than working with a bearish bias. A break of the decrease parallel validated by a drop by way of the October 31 low at 53.66 ought to have WTI rolling downhill in the direction of the 50 line, and probably the 2016 trend-line, a goal that has lengthy been on the board.
On the quick second, oil is working into…