According to our previous expectations and in tune with our current trading position, we’ve witnessed a decline in today’s pre-market crude oil trading . However, this doesn’t mean that there are no changes in crude oil’s chart whatsoever.
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Decline In Oil Price
Conversely, according to today’s decline, the price of crude oil topped on October 20 th . Why would this be important? Because this top was slightly above the September 18 th top, and at the same time, the early-October bottom was somewhat above the early-September bottom.
We are aware that the above may sound perplexing, but please take another look at the chart above. We connected these price extremes with the black lines. These lines create a zigzag pattern as of the classic ways for any market to correct its preceding move before it resumes it. The preceding move was downward – the decline that started in late August and ended in early September.
The Crude Oil Correction Is Already Over
Since what we saw was one of the popular corrective patterns, the odds are that the correction in crude oil is already over. In other words, instead of consolidating further, the price of black gold can finally move lower once again.
To summarize, for the upcoming weeks, the outlook for crude oil stays bearish, and the most recent upswing did not change that at all.
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Oil Trading Strategist
Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager
The information above represents analyses and opinions of Przemyslaw Radomski, CFA & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Przemyslaw Radomski, CFA and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.