CRUDE dominated by bears dragging the market lower throughout the day
Crude Oil (CRUDE) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, CRUDE finished Monday at 58.09 losing $1.03 (-1.74%). Today's close at 58.09 marks the lowest recorded closing price since December 3, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 58.85, Oil confirmed its breakout through the previous session low after trading up to $0.94 below it intraday.
Daily Candlestick Chart (CRUDE as at Jan 13, 2020):
Monday's trading range has been $1.36 (2.3%), that's slightly below the last trading month's daily average range of $1.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRUDE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on January 10th, CRUDE lost -1.74% on the following trading day.
Prices are trading close to the key technical support level at 57.90 (S1). The contract closed below the 50-day moving average at 58.81 for the first time since November 29, 2019.
Crossing below the lower Bollinger Band for the first time since November 29, 2019, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 60.86 or signal the beginning of a strong momentum breakout leading to even lower prices.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Oil. Out of 20 times, CRUDE closed higher 65.00% of the time on the next trading day after the market condition occurred.
With five out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are COFFEE losing -2.76% and GOLD closing -0.94% lower. On the flipside the best performers have been CORN closing 0.75% higher and SUGAR gaining 0.65%. Read more