Crude Oil Update

The multi-year supply driven bear market for Crude Oil (CL/) may be on the verge of ending, at least in the near-term, as the commodity has returned to a positive trend for the first time since July 31, 2014, indicating that demand has begun to outpace supply.  From a technical a standpoint, the collapse in the price of oil began back in 2014 when CL/ violated its bullish support line at the $99 level.  Crude Oil then fell to a bottom of $27.00, which it hit in January and February of this year.  CL/ has since given three consecutive buy signals, the last of which at $42.00, taking CL/ through the bearish resistance line.  While CL/ was in a negative trend, it lost -56.98% of its value while the broad-based Continuous Commodity Index was down -25.25% and the S&P 500 Index posted gains of 6.79%.  In tandem with the positive trend change, comes a reversal in monthly momentum to the upside, suggesting the potential for further gains for Crude Oil.  The commodity is overbought here at 63%, based on a ten-week trading band.


To learn how our Technical Strategies may help you, please contact us.