Light Crude Oil FuturesUpdated Crude Oil Could Be Setting Up A Huge Trade Opportunity!
Hi friends! Welcome to this analysis on the oil market, via the Light Crude Oil Futures weekly chart. Let's get right to it! Looking here on the weekly chart, we can clearly see that oil is in a huge falling wedge formation (in black.) Price is currently being suppressed by a falling trendline resistance level (in blue,) as it converges with the 50 week moving average (in orange.) CL is clearly dealing with some immediate overhead resistance there, and if we can get above that, I think a test of the top side of the formation would be quick to follow. However, continued failures at the 50 week moving average, and the falling blue trendline could cause prices to fall even lower.
So, what I'm really looking for here is a breakout above the falling blue trendline and the 50 week. If that happens, CL could be testing the 70 level by later this year. From there, I will be extremely interested to see if there is a breakout of the larger falling wedge formation. That could produce a powerful rally, with some very powerful trade setups. But it will all depend on how CL performs at this immediate overhead resistance.
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I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
So, what I'm really looking for here is a breakout above the falling blue trendline and the 50 week. If that happens, CL could be testing the 70 level by later this year. From there, I will be extremely interested to see if there is a breakout of the larger falling wedge formation. That could produce a powerful rally, with some very powerful trade setups. But it will all depend on how CL performs at this immediate overhead resistance.
#PoopLovesYou
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Note
Given the tensions with the Saudi drone strikes, oil prices are expected to rally at the open, due to supply restrictions in the market. This could produce a breakout above the blue trendline resistance on the chart.Note
Crude printed a strong breakout above the blue falling trendline. If CL can hold above that, the top of the black wedge should be next.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.