Crude Oil Prices Dive From Daily Highs
- Crude Oil Prices Reverse Off Daily Highs
- Short Term Price Action Suggests a Return in Bearish Momentum
- Looking for additional trade ideas for Crude Oil and Commodities? Check out our Pound Trading Forecast
Crude Oil prices have turned off of their highs of the day, after initially advancing on news that U.S crude stockpiles fell 553,000 barrels last week. Initially after this news, Crude Oil prices spiked as high as $50.07. However, this move may be seen as a technical lower high, when compared to the peak in Crude Oil prices in October at $51.90.
Crude Oil 1 Hour
(Created using TradingView Charts)
As Crude Oil prices slide off of daily highs, traders may look to short term momentum cues to help decipher the commodities next move. Using the 5 minute graph below, the Grid Sight Index (GSI) has identified a short term downtrend forming in Crude Oil. After reviewing 3,917,735 pricing points, GSI has indicated that price action has continued to decline by $0.17or more in 71% of the reported 17 matching historical events. This places the first bearish historical distribution point at a price of $48.77. A move to this value would have aggressive bearish implications as Crude Oil would then be trading to daily lows.
Alternatively, GSI has indicated that prices have increased by $0.37 in 0% of the identified historical instances. While historical matching events have not reflected an advance in the past, if Crude Oil reaches the first bullish distribution at $49.31 it would suggest a turn in momentum. At this point traders should reevaluate Crude Oil’s short term trend, and look for prices to make a push back towards daily highs.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.