Crude Oil Not in the Clear Until above 49
Chart Prepared by Jamie Saettele, CMT
-Recent comments have noted that “the possible yearlong head and shoulders pattern (lows in August 2015, February 2016 and August 2016) is intriguing but the right shoulder could form for quite some time before the next advance. 43 and mid-48.00s are well defined market levels (the former level has been support the last 3 days). A break of one of these levels is needed in order to set direction for the next move.” Crude traded above 48 today on an intraday basis but settled below. Near term momentum is promising (4 hour RSI held 40 on recent declines). Be aware that longer term slope considerations stretch into 49.