A generic image of chart
Markets

Autochartist - Daily Commodities Update: US Crude Oil

Crude oil futures headed sharply lower in Tuesday's trading session, pulled down largely by stock market weakness. The sell-off completed a breakout from the Channel Up chart pattern illustrated here on the 240-minute time interval, and sets the market in motion for a possible prolonged downtrend.

The most recent breakout generated a sell signal when the nearby US Crude Oil futures fell through the channel support at $97.00 per barrel, generating the projected price forecast. The market immediately headed towards the target area, settling in the middle of the range of $92.77 and $95.06 per barrel. While this level serves to fulfill the forecast and conclude the pattern, it also leaves the market open for a continuation to the bottom end of the range. The strong momentum and high volatility encourages this as a possible outcome, with the length and size of the Channel Up chart pattern also suggesting this could be the beginning of a longer term decline to new lows.

Crude oil will require a retracement back to at least $97.50 to reverse the current bearish technical outlook, with short-term consolidation inside the forecast price range likely as the trend direction clarifies.

For further information on this and other Autochartist products, visit our website at www.autochartist.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos