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Short Term Rally On Crude May Be Over

Published 08/08/2016, 09:07 AM
Updated 07/09/2023, 06:32 AM
CL
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Crude oil has been on a short term bull run from the lows at around 39.30 but let´s not forget that we are still inside a mid-long term bear market structure (blue channel) that price is testing at the moment.

42.78 is a previous high volume area where sellers are going to be placed and longs are going to start taking profit. This will have one single effect on price: immediate bearishness. This actually is not a short signal by our standards, but it´s in fact an area that we had flag as a possible reversal zone.

If we look inside the blue bear structure we can see that price has clearly formed a bear flag but for this flag to be active price not only has to break with it but it also has to break with the bull/bear zone of 41.70 - 41.90. In any case, we remain bearish inside this structure.

Crude Oil Hour Chart

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