Crude Oil - The Ground Is Starting to Shake / Commodities / Crude Oil

Yesterdaywe witnessed a good attempt to move to the downside. The sellers were partiallyrebutted. How did the big picture stand the test of yesterday and what are weto do about it?

Let’sexamine the chart below (charts courtesy of http://stockcharts.com).

Yesterday,crude oil increased a bit after the market’s open and hit a fresh January high.On an intraday basis, that is. The combination of the 38.2% Fibonacciretracement and the upper line of the purple rising trend channel stopped the buyersfor the third time in a row. The price reversed down and even if it ended the day way off thelows, it was still a clear down day. In the near future, we are likely to getmore confirmation of the approaching move down in the form of higheraccompanying volume than yesterday– that would represent more ofa conviction of the sellers.

Black goldclosed the day slightly below the upper border of the red consolidation basedon the December peak. We can read this as invalidation of the earlier breakout,which is a bearish development. This is further underlined by the StochasticsOscillator ready to flash its own sell signal.

Recentobservations featured in our OilTrading Alerts remain up-to-date also today. The odds favor the move to thedownside. At a minimum, we are likely to see a drop to the lower border of thepurple rising trend channel in the very near future. If this support doesn’thold, the next downside targets would be the 50-day moving average (currentlyat around $50.72) and the green support zone around the $50 mark.

If youenjoyed the above analysis and would like to receive daily premium follow-ups,we encourage you to sign up for our Oil Trading Alerts also benefit from thetrading action we describe. We encourage you to sign up for our dailynewsletter, too – it’s free and if you don’t like it, you can unsubscribe withjust 2 clicks. If you sign up today, you’ll also get 7 days of free access toour premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Nadia Simmons
Forex & Oil Trading Strategist
PrzemyslawRadomski
Founder, Editor-in-chief

Sunshine Profits: Gold & Silver, Forex,Bitcoin, Crude Oil & Stocks
Stay updated: sign up for our free mailing listtoday

* * * * *

Disclaimer

All essays, research andinformation found above represent analyses and opinions of Nadia Simmons andSunshine Profits' associates only. As such, it may prove wrong and be a subjectto change without notice. Opinions and analyses were based on data available toauthors of respective essays at the time of writing. Although the informationprovided above is based on careful research and sources that are believed to beaccurate, Nadia Simmons and his associates do not guarantee the accuracy orthoroughness of the data or information reported. The opinions published aboveare neither an offer nor a recommendation to purchase or sell any securities. NadiaSimmons is not a Registered Securities Advisor. By reading Nadia Simmons’reports you fully agree that he will not be held responsible or liable for anydecisions you make regarding any information provided in these reports.Investing, trading and speculation in any financial markets may involve highrisk of loss. Nadia Simmons, Sunshine Profits' employees and affiliates as wellas members of their families may have a short or long position in anysecurities, including those mentioned in any of the reports or essays, and maymake additional purchases and/or sales of those securities without notice.

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.