A false break in 2017 above the neckline to a broad bullish weekly Head & Shoulders pattern which has been formed with a “Head” at last year’s 14 year low at 26.14 and the end to a sequence of higher monthly lows in March has switched signals for Crude Oil on the trend table to bearish.
Although there is the potential that the last 14 month rally is corrective, at this stage it is this month’s pullback that is more likely to be temporary. So while the trend table remains bearish, the view is a cautious one and is probably limited to November’s base at 42.20 (trend of higher quarterly lows), or at most 38.74, a 50% pullback to the entire 2016-2017 rally. We will be monitoring signals closely for any bullish reversal and this will be seen/updated on the trend table.
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