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Bad News For Crude Oil Should Come From This Pattern

By Chris KimbleCommoditiesJan 24, 2020 04:17PM ET
www.investing.com/analysis/bad-news-for-crude-oil-should-come-from-this-pattern-200501488
Bad News For Crude Oil Should Come From This Pattern
By Chris Kimble   |  Jan 24, 2020 04:17PM ET
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WTI Crude Oil
WTI Crude Oil

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the U.S. dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock-market tops and bottoms over the years, and especially the past several months – crude oil.

When crude oil tops or bottoms, it seems that the stock market follows along. And with crude reversing lower last week, it’s probably a good idea that investors pay attention here.

The past two times that crude oil has created a reversal pattern at the Fibonacci 61% retracement level, it fell at least 15% from the highs. Odds are strong that due to this pattern, oil will experience a similar decline again.

Bad News For Crude Oil Should Come From This Pattern
 

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Bad News For Crude Oil Should Come From This Pattern

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Comments (10)
Bagus Panuntun
Bagus Panuntun Jan 26, 2020 12:36AM ET
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watch out the bull is coming and striking back this week!!
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jan 25, 2020 10:38AM ET
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OPEC will shut down taps really hard this time
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jan 25, 2020 10:37AM ET
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WTI should inch higher to 70 USD
George Steven
George Steven Jan 25, 2020 6:34AM ET
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I have noticed this correlation as well. Large drops in oil is a forward indicator for equities. Markets often stall or drop. Also 10 percent of the world stock market is energy as well. Dow theory at work using oil along side transportation as a forward indicator.
Joshua Hunt
Joshua Hunt Jan 25, 2020 2:57AM ET
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atleast i got in alittle lower at 54.19...will add more to my longs...if necessary
Jan Skilbrei
Jan Skilbrei Jan 25, 2020 1:58AM ET
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Such analysis is of little value now, except chasers (at least to beginners), if you really want to help, you need to release what you have been watching for nearly two weeks now, a bit earlier. Seems like journalists, and analysts contributing to https://investing.com, only writes after massive confirmation.  (early possibly 'patterns' have great value). Anyhow, thanks.
Bear Slayer
Bear Slayer Jan 24, 2020 11:09PM ET
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A bit late to know. Many brent traders wiped out their account
Josh Harvey
Josh Harvey Jan 24, 2020 11:09PM ET
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Pretty cool lol
Jim Todd
Jim Todd Jan 24, 2020 7:51PM ET
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ugh... a little late.. Crude broke $54 today and is now already down 15% from the $67 high..
Kamaljeet Singh
Kamaljeet Singh Jan 24, 2020 6:36PM ET
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superb analysis sir, tanx a lot
WALLSTREET MONEY NEVERSLEEP
WALLSTREET MONEY NEVERSLEEP Jan 24, 2020 1:49PM ET
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thanks for the knowledge
 
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