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Are Crude Oil Prices Creating A Long-Term Double Top?

ByChris Kimble
Published 08/22/2022, 11:14 AM
Updated 07/09/2023, 06:31 AM

Consumers have taken notice of falling gasoline prices—and they like it.

But will gas prices continue to fall? For that to happen, consumers (and investors) will need to pay close attention to crude oil prices (which have been falling lately). And they should be aware of a very bearish potential chart pattern.

Crude Oil Monthly Chart

Below is a long-term monthly line chart of crude oil that highlights the prospects of a potential double-top pattern at point (1). As you can see, crude oil closed on a monthly basis at the same price it did 11 years ago (red arrow and line). And now it is reversing lower.

This move lower has also taken the price of crude oil below its uptrend support line at (2). If it closes the month below this trend line, it would be concerning.

This brings an interesting (and important) question to light: did the most important commodity on the planet double top 11 years later?

Latest comments

it's the Iran boogie man dude. Technical and fundies don't matter when terrorists can cause global warming.
can't cause
There's a very strong trend on the monthly chart with all the moving averages and a channel in alignment with a nearly 45% positive slope. If there were some closes below those monthly support levels, maybe I would be convinced that there's a chance at a change in trend but as far as I can tell the trend is bullish and all of the things in the "real world" are lining up bullish as far as I can tell. It was not enough for the Biden admin to antagonize our domestic energy producers, he had to go instigate a conflict with Russia, get our allies to impose sanctions that have all backfired, and then allow Piglosi to instigate a conflict with China over Taiwan.
sorry meant to say 45 degree slope
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