Crude oil appears to be bearish in the near future. This conclusion can be drawn from various data points, which we will examine sequentially:
Chart Patterns: Upon examining the continuous contract chart pattern for crude oil futures in the daily timeframe, we notice that the price has reached resistance, as depicted in the accompanying image. Furthermore, the candles have become smaller as the price reached this resistance point, with the most recent candle resembling a doji. This pattern can serve as an indicator of future trends.
Relative Strength Index (RSI): The RSI for crude oil in the daily timeframe has reached the upper band of 70, which is considered the overbought zone. This can be interpreted as an indicator that crude oil may weaken significantly over the coming period.
Trading Volumes: A careful observation of trading volumes reveals that they have flattened, or even slightly decreased. This can be another signal that crude oil may become bearish in the near future.
Crude Oil Inventory Data: By analyzing the crude oil inventory data, we can infer that the supply is not as low as expected. This suggests that while the supply remains consistent, the demand is decreasing, which could lead to a drop in crude oil prices in the future.
In summary, considering all these points, we can conclude that the price of crude oil may decrease in the near future.
Chart Patterns: Upon examining the continuous contract chart pattern for crude oil futures in the daily timeframe, we notice that the price has reached resistance, as depicted in the accompanying image. Furthermore, the candles have become smaller as the price reached this resistance point, with the most recent candle resembling a doji. This pattern can serve as an indicator of future trends.
Relative Strength Index (RSI): The RSI for crude oil in the daily timeframe has reached the upper band of 70, which is considered the overbought zone. This can be interpreted as an indicator that crude oil may weaken significantly over the coming period.
Trading Volumes: A careful observation of trading volumes reveals that they have flattened, or even slightly decreased. This can be another signal that crude oil may become bearish in the near future.
Crude Oil Inventory Data: By analyzing the crude oil inventory data, we can infer that the supply is not as low as expected. This suggests that while the supply remains consistent, the demand is decreasing, which could lead to a drop in crude oil prices in the future.
In summary, considering all these points, we can conclude that the price of crude oil may decrease in the near future.
Comment:
Crude oil still looks bearish below 6557