Crude Oil has broken out of its downtrend, jumping over 8% today after the Geo-political event over the weekend has effected a material amount of global supply of Oil. At this stage its unclear how long it will take to get supply back online.
So given this terrible event occurring does this mean we will see Oil retest its old highs over $100 USD a barrel? The short answer is it depends on what happens next. Will there be a retaliation for the attack and what will Oil producing countries do in the short term to deal with potential supply issues.
So What Does The Charts Say?
The charts are showing us that Crude Oil is clearly outside of its downtrend line sitting above its 10 & 52 day moving average indicating its now in a bullish stance. Currently its sitting just above $59.15 support after earlier breaching multiple resistance levels. If $59.15 support can hold today and for the remainder of the week, this would be quite bullish for Oil.
However if Geo political events settle down for the remainder of the week, its quite possible we see a move back down to $57.30 support. Given the quite large rejection tail today, it appears for now at least the market doesn’t see considerably higher prices. But this can change very quickly if events escalate globally.
If we were to see a move above $60.90 resistance, that can hold these levels, then its certainly possible we will begin to move closer $63 levels and higher. Its important to note that global demand for Oil is slowing so any moves higher will be short term in nature based on disruptions in current & potential future Oil supplies.
So at least for the next few weeks its likely to be quite volatile for Crude Oil markets as the market digest all the available information that comes online.
Join the Investing & Trading Community At Guruhaven
If you enjoyed this review of Crude Oil, that was originally posted for members at Guruhaven , you can join the community free to receive regular macro news, trading ideas, original trading content, chart reviews from Crush The Market and the Guruhaven community of traders and investors.
Join FREE using referral code: Crush19
Simply visit http://guruhaven.com/membership
If you would like to take a look at this week's newsletter which includes the best posts on Guruhaven covering TLT, GLD, BUND, MSFT, AAPL, SPY, QQQ, XLK and more, simply by clicking the link http://bit.ly/GuruHaven_WNL_23
Disclaimer: Please note all information presented here at Crushthemarket.com, Guruhaven weekly newsletter and within the Guruhaven.com website and its community platform are presented for educational purposes only, and does not represent financial advice in any way. If you require financial advice please seek a licensed advisor who can provide these services.
Via Social Icons
I am a private trader and equities investor that loves the trading and investing world, following the markets and everything in between.