Crude is Near Another Inflection Point. Was That the Rebound?

Crude is still strongly bearish. The very oversold conditions might spur a small rebound. At least a small rebound in the short term. But this seems like the rebound we have seen so far is too small to suffice. Will we see more of a rebound?

I was expecting more of a rebound. You can see this illustrated in the chart below. There still could very well be more of a rebound. But with higher inventories and lower than expected PPI data that released earlier, there isn't much fuel to ignite any uptrend today at least.

In a strong downtrend, the indicators will stay in oversold conditions. So apparently, if you haven't noticed, crude is in a very strong downtrend. You should have been riding this downtrend with me for over a month now if you have been keeping up with my posts about oil.

Follow the links in my comments to stay with the trend. Check out my previous post by clicking the link below.

Technically speaking, crude is still near a major inflection point. The long-term horizontal level I've highlighted in the chart below was a strong resistance level on the past. It may possibly act as support in the near future. So keep an eye out for any rebound or rangebound price action near this area. Basically, we might see some friction or a slowing down of this sharp downtrend.

And remember the head and shoulders pattern from the previous post? Well, the correction in price that follows a head and shoulders is almost complete. That would be the ~15% drop I talked about in my previous comments.

Oil's charts are still strongly bearish. I wouldn't jump out of any short position yet. Even if we do see that small rebound I am expecting.

Maybe when economies show signs of picking up, then we might get some buyers to step into the oil market. But most importantly, if the Middle East conflict escalates, then we could see some big moves in oil prices.

As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you vant afford to lose. Give some of your investments time and know when to cut your losses.

Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.