Hello traders, welcome back to another market breakdown.
Crude Oil traded lower earlier in the week after a small pullback bear trend.
The bears got 3 pushes down, forming a wedge pattern. They want a retest of the June or May lows, followed by a breakout below.
The bulls see the current move down simply as a bear leg within a trading range. They want a reversal from a wedge bull flag (Oct 6, Nov 16, and Dec 13) and a higher low major trend reversal. They hope to get a retest of the September high.
Crude Oil remains in a 71-week trading range. Traders will Buy Low and sell High in trading ranges until there is a breakout with sustained follow-through buying/selling.
At the moment, the market is trading near resistance, traders should wait for the next pull-back and look for buys.
Geopolitics + still strong US economy + OPEC cuts = all supporting further Oil upside