CRUDE OIL – Pullback Temporary?
16th March 2017
Crude Oil – Trend Bearish, but Pullback should be Temporary
A break, at the beginning of 2017, above the neckline to a broad bullish weekly Head & Shoulders pattern which was formed with a “Head” at last year’s 14 year Oil low at 26.14 has proved a false one.
Last week’s decline took the market back under that neckline and ended a sequence of higher monthly lows. This has switched signals for sentiment for Crude Oil on our 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 assessed as more likely to be temporary. So the sentiment bias remains bearish, this Crude Oil view is a cautious one and is probably limited to November’s base at 42.20 (a 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 will update our Trend Table page and also advise by mail when/if this develops.
