Crude oil is the best performing commodity this week up over 8% and is in no shortage of bullish news. With geopolitical tensions rising in the mid-east and an explosion at an east coast refinery we may see another run up to the 100 and 200 DMA just over $59/barrel. The current chart pattern for August crude oil is one of my all-time favorites being a double bottom “W” shape. With MACD turning bullish and stochastics moving into overbought territory this market appears to be going from a strong bear market to a strong bull market. A red flag would be a close below $55 or is ADX closes below 20 indicating that the strength of the trend is over.

Crude Light Aug ’19 Daily Chart

Crude Light Aug '19 Daily Chart

Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.