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Is Crude Oil Forming Bearish Hanging Man Pattern At 2018 Highs?

ByChris Kimble
Published 08/04/2021, 11:10 AM
Updated 07/09/2023, 06:31 AM

Long-Term Monthly Crude Oil Chart.

Several commodities have been on a tear higher over the past 18 months. This list of commodities includes crude oil.

As a key economic input, crude oil is more than just a tradable asset. Crude oil is an excellent indicator for the economy, as well as a commodity to watch regarding inflation.

Today we look at a long-term “monthly” chart of crude oil futures. And why we may be at a key inflection point.

The $75 level has been support and resistance multiple times over the past 10 years. And last month, crude oil closed right on this key support/resistance line at (1).

But the price action also did something that could have bearish implications.

While testing this key level last month, crude oil may have created a “hanging man” topping pattern. Any further decline this month would raise concerns of a bearish reversal pattern taking hold. Stay tuned.

Latest comments

Crude Oil He targets 140 dollars his problem to reach this number   The expected financial collapse of the global markets
So you tell us that the price of Crude Oil will raise soon?
Ha Ha it is not about any Man Hanging it is all about the news who and the traders who want to buy or not
why are we using less oil again ? covid, not Greta Turnberg
Looking at the monthly chart, oil has broken out of a long term down trend.  Since this is the case, 75$ should eventually return as support despite a hanging man.  Usually resistance is tested a couple of times before it is finally broken and becomes support.  It tested it twice in 2018 on the monthly and failed (but there was also a US president tweeting that oil prices are too high).  This was really only the first test for the 75 resistance this go around... I suspect it will be tested again, and likely break it.  Times have changed since 2018.
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