• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 2 hours Climate Change Protests
  • 9 hours Japan’s Deflation Mindset Could Be Contagious
  • 1 min Oil at $40
  • 2 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 2 hours "Undeniable" Shale Slowdown?
  • 1 hour China To Promote Using Wind Energy To Power Heating
  • 14 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 20 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 10 hours Ecoside
  • 24 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 23 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
  • 19 hours Negative Gas Prices in the Permian
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

A Good Sign For Bullish Traders… With A Catch

October Crude Oil

Technical Analysis

(Click Image To Enlarge)

October Crude Oil futures are in a position to finish the week higher after an impressive follow-through rally, following last week’s potentially bullish closing price reversal bottom chart pattern. Although the main trend is still down according to the weekly chart, the chart pattern indicates a shift in momentum to the upside.

If the rally continues then look for crude oil to test the first two objectives at $50.20 and $51.25. Since the trend is down, sellers are likely to come in following a test of this zone. If the buying is strong enough to continue the move, then the rally may extend into $53.14 to $54.43.

The first rally after a prolonged move down is usually short-covering. Buyers don’t usually come in until a support base is established. The initial rally was $37.75 to $49.33. Early last week, the market tested its retracement zone at $43.54 to $42.17. There was a strong technical bounce on a test of this zone, suggesting that aggressive buyers may have enough to support the market.

This is a good sign for bullish traders, however, the market may test the short-term retracement zone several times before a solid support base forms. In the meantime, crude oil may bounce between $43.54 and $50.20 while the bulls and the bears battle it out for control.

A failure to hold $42.17 will signal that sellers have regained control. In this case, buyers…




Oilprice - The No. 1 Source for Oil & Energy News