A Bounce for Crude Oil

Crude Oil had been on a tear. From a bottom in April near $62 per barrel it had run higher for more than a month, reaching nearly $73 per barrel. This was a 3 1/2 year high. Then last week it started to fall back. The move accelerated into the end of the week. Tuesday it found a bottom just over the rising 100 day SMA and on support at the January high. Prior resistance has become support. With a bounce Wednesday is the all clear bell ready to ring?

The chart below suggests that Tuesday could very well be the bottom. As mentioned above, it did respect support at prior resistance. It also bounced at a rising trend support line. This is the bottom of a rising channel. It will play out however it does of course, but this was a good place to bounce if it is ultimately a bottom.

Momentum indicators have reset lower. The RSI is now back in the 40’s and rising again. The MACD is nearly back to zero, but positive. Follow Through Thursday and Friday would go a long way to solidifying a reversal off of a new higher low. Keep an eye on Crude Oil.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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