Crude Oil Near Support Continues to Make Lower Lows, Lower Highs
Crude Oil ($CL_F, $USO) Daily: There’s nothing exciting or encouraging to say about Crude Oil at the moment, as it continues to make lower lows and lower highs, both on the current downward trend that it’s on, as well as on a larger time interval, starting from March of 2017. It should, however find some support around the $43 area, where it is near today at the moment, as shown in the chart below, and should it break below that, then it should find another support at the $39.25-40 levels.
Daily RSI is showing some oversold conditions, but MACD has yet to try to round-bottom out and show signs of a reversal of current, larger, negative trend. This continued step laddering down in current channel isn’t very encouraging for Crude bulls out there (see hourly chart below) and we need to see Crude make at least a higher high on the smaller time frame to see any signs of a reversal in the near future. As shown in the previous two lows, it may resume to break to $40 after finding support at $43 and moving higher, but not able to make a higher high (again). Weekly chart shows continued negative momentum as well, so we may indeed see that $40 level in the near future, past July and in to August.
Daily RSI is showing some oversold conditions, but MACD has yet to try to round-bottom out and show signs of a reversal of current, larger, negative trend. This continued step laddering down in current channel isn’t very encouraging for Crude bulls out there (see hourly chart below) and we need to see Crude make at least a higher high on the smaller time frame to see any signs of a reversal in the near future. As shown in the previous two lows, it may resume to break to $40 after finding support at $43 and moving higher, but not able to make a higher high (again). Weekly chart shows continued negative momentum as well, so we may indeed see that $40 level in the near future, past July and in to August.