• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Crude Oil – As Bullish As It Seems?

By Kurt Osterberg · On April 16, 2018

A fresh 2018 high, an unbroken resistance and negative divergence. What does this interesting mix tell us about oil bull’s strength and further increases?

Technical Analysis of Crude Oil

Let’s examine the charts below (charts courtesy of http://stockcharts.com).

The first ting that catches the eye on the daily chart is a fresh 2018 peak created on Friday. Is this a positive sign? Yes. Is it bullish? In our opinion, not as bullish as it may seem at the first glance.

Why? Although black gold hit a new peak (only 21 cents higher than Wednesday’s intraday high), it is still trading under the upper border of the green rising trend channel.

Additionally, the shape of Friday’s candlestick doesn’t look encouraging (but only from the buyers’ point of view). For those who read our analysis for the first time, we would like to explain here what spool means for the trend. If this candlestick is drawn on the market, it means that the forces of the bulls and the bears have leveled out, and the market has lost strength for further increases (as in our case) or decreases.

However, the spool formation itself is not a strong prognostic formation. It should usually be confirmed by more candles. If the spool appears in the uptrend, the next black candle should appear to confirm the formation. Will we see it in the coming days?

Bearish Signs on the Horizon

Looking at the volume, such scenario seems very likely, because although light crude hit new high, Friday’s upswing materialized on the smallest volume in whole week, which doesn’t confirm oil bulls’ strength.

On top of that, the CCI and the Stochastic Oscillator climbed to their overbought areas, which suggests that we can see sell signals in the very near future. Additionally, there is also a bearish divergence between the price of black gold and the CCI, which increases the probability of reversal in the very near future.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.