CRUDE pushes through key technical resistance level
Crude Oil (CRUDE) Technical Analysis Report for Nov 20, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CRUDE ended the week 5.36% higher at 42.47 after gaining $0.57 (1.36%) today on low volume. Today's close at 42.47 marks the highest recorded closing price since September 1st. Closing above Thursday's high at 42.15, Oil confirmed its breakout through the prior session high after trading up to $0.39 above it intraday.
Daily Candlestick Chart (CRUDE as at Nov 20, 2020):
Friday's trading range has been $0.93 (2.22%), that's below the last trading month's daily average range of $1.79. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRUDE. Prices continued to consolidate within a tight trading range between 41.26 and 42.65 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on October 13th, CRUDE gained 2.29% on the following trading day.
Buyers managed to take out the key technical resistance level at 42.28 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 42.65 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 41.26 where further sell stops might get triggered. Trading close to September's high at 44.15 we could see further upside momentum if potential buy stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Oil. Out of 726 times, CRUDE closed higher 52.62% 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 2.13% and SILVER closing 0.52% higher. On the flipside the worst performers have been COFFEE closing -4.66% lower and SUGAR losing -0.46%. Read more