CRUDE finds buyers around 52.16 for the third day in a row
Crude Oil (CRUDE) Technical Analysis Report for Dec 05, 2018 | by Techniquant Editorial Team
CRUDE ended Wednesday at 52.92 gaining $0.31 (0.59%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CRUDE as at Dec 05, 2018):
Wednesday's trading range has been $2.28 (4.34%), that's slightly below the last trading month's daily average range of $2.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CRUDE. Prices continued to consolidate within a tight trading range between 52.03 and 54.55 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 52.16 earlier during the day, the market bounced off the key technical support level at 52.56 (S1). The failure to close below the support might increase that levels significance as support going forward. Oil found buyers again today around 52.16 for the third trading day in a row after having found demand at 52.43 in the previous session and at 52.03 two days ago. The last time this happened on November 28th, CRUDE gained 1.89% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 54.55 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Oil. Out of 466 times, CRUDE closed higher 54.72% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.58% with an average market move of 0.50%.
With five out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are NATGAS losing -1.54% and COFFEE closing -1.17% lower. On the flipside the best performer has been SUGAR closing 0.16% higher. Read more