CRUDE dominated by bears dragging the market lower throughout the day
Crude Oil (CRUDE) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CRUDE finished Monday at 38.60 losing $1.18 (-2.97%). Today's close at 38.60 marks the lowest recorded closing price since October 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 39.57, Oil confirmed its breakout through the previous session low after trading up to $1.29 below it intraday.
Daily Candlestick Chart (CRUDE as at Oct 26, 2020):
Monday's trading range has been $1.46 (3.68%), that's slightly below the last trading month's daily average range of $1.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 Black Candle. The last time a Black Candle showed up on October 23rd, CRUDE lost -2.97% on the following trading day.
Prices broke below the key technical support level at 39.50 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test September's close-by low at 36.66.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Oil. Out of 322 times, CRUDE closed higher 54.66% of the time on the next trading day after the market condition occurred.
With four out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are NATGAS gaining 2.2% and COFFEE closing 1.2% higher. On the flipside the worst performers have been WHEAT closing -2.34% lower and SILVER losing -1.33%. Read more