The Classic “W” Pattern in Crude OilPosted 06/21/2019 8:48AM CT |
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