CRUDE closes within prior day's range
Crude Oil (CRUDE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CRUDE ended the week 12.69% higher at 33.56 after losing $0.35 (-1.03%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CRUDE as at May 22, 2020):
Friday's trading range has been $3.28 (9.66%), that's slightly above the last trading month's daily average range of $2.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CRUDE.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on February 21st, CRUDE lost -3.44% on the following trading day.
While Oil is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 34.66 where further buy stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 36.81.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Oil. Out of 56 times, CRUDE closed higher 55.36% 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 six trading days, showing a win rate of 62.50% with an average market move of 0.11%.
With four out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are WHEAT losing -1.36% and COFFEE closing -1.1% lower. On the flipside the best performers have been NATGAS closing 1.5% higher and SILVER gaining 1.4%. Read more