Crude oil futures<\/h2>\n\n\n\nThe Weekly<\/em> crude oil chart<\/h3>\n\n\n\n![\"Crude](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/Crude-Oil-Failed-Bear-BO-Possible-Small-2nd-Leg-Down.jpg\" "\\"\\"")
<\/a>Crude Oil Failed Bear BO, Possible Small 2nd Leg Down<\/figcaption><\/figure>\n\n\n\n\n- This week\u2019s candlestick on the weekly Crude Oil chart<\/a> was a big bear bar closing above its midpoint. It was a failed bear BO below the low of the prior bull leg.<\/li>\n\n\n\n
- Some computers will see it as a bull bar so that it can act as a High 1 buy signal. But most traders should wait for something clearer if we trade above.<\/li>\n\n\n\n
- The bears broke below the March 20th<\/sup> low but failed to get a good close. It is three consecutive bear bars, so they might expect a small second leg sideways to down\u2014even if it is just one more bar.<\/li>\n\n\n\n
- We said last week that a possible major trend reversal<\/a> was setting up, and it was a low-probability sell, low in a tight trading range. That was true. <\/li>\n\n\n\n
- The bulls didn’t get their second leg so they were disappointed. But now with a failed Bear BO they might look to buy more strongly.<\/li>\n\n\n\n
- Disappointment is a good sign you are in a trading range.<\/li>\n\n\n\n
- The bears who got trapped on March 20th<\/sup> got out – those who sold below the big bear bar and those who sold above the bull doji. Lucky for them!<\/li>\n\n\n\n
- Bulls got two closes above the moving average, but some were disappointed and exited when there was weak follow-through buying. The break above the minor trend line meant likely support below the low, and there was.<\/li>\n\n\n\n
- It was a bad stop order sell at a 50% pullback and below the 4 bull bars in a tight trading range, so it was a good limit order buy there – those traders are already in the money.<\/li>\n\n\n\n
- It is a big bear doji, so it is a bad buy signal, and because of the high close, it is a bad sell signal – so next week has a high chance of being an inside bar. <\/li>\n\n\n\n
- Now with a new low, there are probably sellers above April 12th<\/sup>.<\/li>\n\n\n\n
- In a tight trading range, traders should expect strong bars to fail immediately, so next week is more likely a bull bar.<\/li>\n\n\n\n
- Bulls rely on the structure from October 2022 – the prior breakout high, so we are testing that support level. Bears closed the gaps, which is less bullish.<\/li>\n\n\n\n
- The bulls want it to be a giant bull flag but look at the size compared to the trend. Flat to declining moving average and a lack of strong consecutive bull bars make it hard for bulls to set up a strong move.<\/li>\n\n\n\n
- Expect sideways to up next week.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> crude oil chart<\/h3>\n\n\n\n![\"Crude](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/Crude-Oil-LL-DB-Parabolic-Wedge-or-Expanding-Triangle-1.jpg\" "\\"\\"")
<\/a>Crude Oil LL DB, Parabolic Wedge or Expanding Triangle<\/figcaption><\/figure>\n\n\n\n
<\/a>- \n
- This week\u2019s candlestick on the weekly Crude Oil chart<\/a> was a big bear bar closing above its midpoint. It was a failed bear BO below the low of the prior bull leg.<\/li>\n\n\n\n
- Some computers will see it as a bull bar so that it can act as a High 1 buy signal. But most traders should wait for something clearer if we trade above.<\/li>\n\n\n\n
- The bears broke below the March 20th<\/sup> low but failed to get a good close. It is three consecutive bear bars, so they might expect a small second leg sideways to down\u2014even if it is just one more bar.<\/li>\n\n\n\n
- We said last week that a possible major trend reversal<\/a> was setting up, and it was a low-probability sell, low in a tight trading range. That was true. <\/li>\n\n\n\n
- The bulls didn’t get their second leg so they were disappointed. But now with a failed Bear BO they might look to buy more strongly.<\/li>\n\n\n\n
- Disappointment is a good sign you are in a trading range.<\/li>\n\n\n\n
- The bears who got trapped on March 20th<\/sup> got out – those who sold below the big bear bar and those who sold above the bull doji. Lucky for them!<\/li>\n\n\n\n
- Bulls got two closes above the moving average, but some were disappointed and exited when there was weak follow-through buying. The break above the minor trend line meant likely support below the low, and there was.<\/li>\n\n\n\n
- It was a bad stop order sell at a 50% pullback and below the 4 bull bars in a tight trading range, so it was a good limit order buy there – those traders are already in the money.<\/li>\n\n\n\n
- It is a big bear doji, so it is a bad buy signal, and because of the high close, it is a bad sell signal – so next week has a high chance of being an inside bar. <\/li>\n\n\n\n
- Now with a new low, there are probably sellers above April 12th<\/sup>.<\/li>\n\n\n\n
- In a tight trading range, traders should expect strong bars to fail immediately, so next week is more likely a bull bar.<\/li>\n\n\n\n
- Bulls rely on the structure from October 2022 – the prior breakout high, so we are testing that support level. Bears closed the gaps, which is less bullish.<\/li>\n\n\n\n
- The bulls want it to be a giant bull flag but look at the size compared to the trend. Flat to declining moving average and a lack of strong consecutive bull bars make it hard for bulls to set up a strong move.<\/li>\n\n\n\n
- Expect sideways to up next week.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> crude oil chart<\/h3>\n\n\n\n
<\/a>Crude Oil LL DB, Parabolic Wedge or Expanding Triangle<\/figcaption><\/figure>\n\n\n\n