Nadia Simmons
Sunshine Profits
Crude oil hasn’t closed higher yesterday and the previous series of rallies appears to face stiff headwinds. Is this it, or can the oil bulls pull a rabbit out of their hats? After all, they’ve reversed Monday’s downswing already. Or does the prospect of wide spectrum U.S. - China uncertainties have the upper hand? It’s making itself heard across the board and crude oil is no exception. Let’s assess the technical picture now.
We’ll take a closer look at the chart below
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Yesterday’s crude oil trading was almost a mirror image of the Monday’s session. While the bulls eked out minor gains on Monday, it was the bears who was stronger yesterday. The price closed down below the 50% Fibonacci retracement yet again. This has been the fourth unsuccessful attempt to overcome it in a row.
As we have pointed to in our yesterday Alert’s title (“The Shifting Sands in the Oil Arena”), this suggests a bearish reversal of fortunes ahead. Indeed, at the moment of writing these words, black gold changes hands at around $62.20 which is back inside the blue consolidation.
Should the commodity keep moving lower from current levels, we’re likely to see at least a test of the lower border of the blue consolidation. Such a move lower is supported by the unconvincingly low volume of the preceding upswing days.
All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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