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Crude Oil last week experienced the worse selloff for 2019 as it fell around -7% for the week. The price action has now confirmed the end of its uptrend, as well as confirming that the bears are back in total control of Crude. The reasoning for this is that the closing price on Friday is now comfortably sitting below its most recent low and support level of $60.40, which it smashed late in the week. In addition, the price action is also now firmly below the long term 52 day moving average (MA). If you take a look at the chart back in late October 2018, which I have circled, you will notice a similar pattern shown. You an also see what followed next for Crude Oil, after the pattern was shown, closing below support and trading under the 52 day MA. Its not clear whether the same crash in prices is evident from the price action so far, but what is clear based on the weight of evidence from the chart, that at least over the next few weeks we are likely to see lower prices ahead, after we see some consolidation from the big moves seen last week.  Looking ahead for this week, I’m expecting to see some much needed consolidation with a potential move this week back to its old support now resistance, around $$60.40. This is because the price action at the end of the week respected support of $57.40 twice, with a double tweezer. The consolidation will allow the oversold price action to regroup as well as the 10 MA catch up to the current price action. Provided Crude Oil holds and doesn’t firmly close above the $60.40 either this week or next, I’m looking for Crude Oil to rollover again soon and move back to $57.40 support, with an eventual target of $55 a barrel once we break the $57.40 support level. If this scenario does eventuate it will likely also bring down the major stock indices of the Nasdaq, Dow & S&P 500. Of course in the era we now live in with the markets, we must also be aware of the possibility of the shock interventions of global Central Banks, when the markets are tanking, to reverse downside moves. 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. Simply visit Guruhaven using referral code: Crush19 by http://guruhaven.com/membership If you would like to take a look at this week newsletter of some of the best posts on Guruhaven covering WTI, DXY, USD/JPY, ,NDX ,DJT ,SPX ,VIX and more, simply for the link http://bit.ly/GuruHaven_WNL_13 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.
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