CRUDE finds buyers again around 22.91
Crude Oil (CRUDE) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
CRUDE ended Wednesday at 24.31 losing $0.02 (-0.08%) on low volume. Trading $0.87 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CRUDE as at Mar 25, 2020):
Wednesday's trading range has been $2.33 (9.56%), that's below the last trading month's daily average range of $4.08. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CRUDE. Prices continued to consolidate within a tight trading range between 20.80 and 25.24 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on January 31st, CRUDE lost -3.28% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
After having been unable to move lower than 23.09 in the prior session, Oil found buyers again around the same price level today at 22.91.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Oil. Out of 125 times, CRUDE closed higher 58.40% of the time on the next trading day after the market condition occurred.
With five out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are COFFEE gaining 3.46% and WHEAT closing 3.43% higher. On the flipside the worst performers have been GOLD closing -1.54% lower and NATGAS losing -1.15%. Read more