{"id":208307,"date":"2024-05-12T01:30:00","date_gmt":"2024-05-12T08:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=208307"},"modified":"2024-05-11T13:55:22","modified_gmt":"2024-05-11T20:55:22","slug":"bears-need-a-crude-oil-breakout","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/bears-need-a-crude-oil-breakout\/","title":{"rendered":"The Bears Need a Crude Oil Breakout"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: Crude Oil Futures<\/h2>\n\n\n\n<p>The bears need a Crude Oil breakout below the bull trend line to increase the odds of the bear leg beginning. The bulls want a retest of the\u00a0April 12\u00a0high after the current pullback, even\u00a0if it forms a lower high. They want the 20-week EMA or the bull trend line to act as support.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Crude oil futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> crude oil chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR-680x383.jpg\" alt=\"Crude Oil Weekly: Bears Need BO, Middle of TR, Bears Need a Crude Oil Breakout\" class=\"wp-image-208444\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This week\u2019s candlestick on the\u00a0<a href=\"https:\/\/www.investing.com\/commodities\/crude-oil-streaming-chart\" target=\"_blank\" rel=\"noreferrer noopener\">weekly Crude Oil chart<\/a>\u00a0was a bull doji bar, closing below the 20-week EMA.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/crude-oil-lower-high\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last week<\/a>, we said\u00a0that traders would see if the bears can get a strong breakout below the bear trend line and a follow-through bear bar closing below the 20-week EMA.<\/li>\n\n\n\n<li>The market traded below last week\u2019s low, but the bears were not able to get a strong follow-through bear bar.\u00a0<\/li>\n\n\n\n<li>The bears got a reversal from a wedge pattern (Dec 26,\u00a0Jan 29,\u00a0Apr 12) and an embedded wedge in the third leg up (Jan 3,\u00a0Mar 19, and\u00a0Apr 12).<\/li>\n\n\n\n<li>They see this week\u00a0simply\u00a0as a pullback and want at least another sideways to down leg, completing the third push down (a wedge) with the first two legs being April 22 and May 8.<\/li>\n\n\n\n<li>The bears have a 5-bar bear microchannel. That means persistent selling.<\/li>\n\n\n\n<li>They\u00a0will need to\u00a0create consecutive bear bars closing near their lows and far trading below the 20-week EMA and the bull trend line to convince traders that the bear leg is underway.<\/li>\n\n\n\n<li>The bulls want a retest of the\u00a0April 12\u00a0high after the current pullback, even\u00a0if it forms a lower high.<\/li>\n\n\n\n<li>They want the 20-week EMA or the bull trend line to act as support.<\/li>\n\n\n\n<li>If the market trades lower, they want a failed breakout below the bull trend line.<\/li>\n\n\n\n<li>Since this week\u2019s candlestick is a bull doji, it is not a strong buy signal bar for next week.<\/li>\n\n\n\n<li>The market may still be in the sideways to down pullback phase.<\/li>\n\n\n\n<li>Traders will see if the bears can get a strong breakout below the bull trend line or will the market continue to stall around the current levels.<\/li>\n\n\n\n<li>The bear leg could be underway if the bears can create a strong breakout and sustained follow-through selling.<\/li>\n\n\n\n<li>Crude Oil\u00a0is currently trading around the middle of the large trading range, which can be an area of balance.<\/li>\n\n\n\n<li>The market is in\u00a0a large\u00a0trading range (Trading range high:\u00a0September 29, Trading range low:\u00a0May 4).<\/li>\n\n\n\n<li>Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction with sustained follow-through buying\/selling.<\/li>\n\n\n\n<li>Poor follow-through and reversals are hallmarks of a trading range.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> crude oil chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down-680x383.jpg\" alt=\"Crude Oil Daily: Bears Want Third Leg Down\" class=\"wp-image-208447\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Bears-Want-Third-Leg-Down.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Crude Oil traded lower on Wednesday but reversed into an outside bull reversal bar. Friday traded higher but reversed into an outside bear bar closing near its low.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/crude-oil-bull-channel\/\" target=\"_blank\" rel=\"noreferrer noopener\">Previously<\/a>, we said that the market\u00a0is trading\u00a0near the upper third of the trading range, which can be the sell zone of trading range traders. Traders will see if sellers appear aggressively here or around the\u00a0September 28\u00a0high area.<\/li>\n\n\n\n<li>The bulls see the current move simply as a two-legged pullback.\u00a0<\/li>\n\n\n\n<li>They want the bull trend line to\u00a0act as support.\u00a0<\/li>\n\n\n\n<li>The problem with the bull\u2019s case is that the recent selling pressure (bigger bear bars with follow-through selling) is stronger than the buying pressure (bull bars with limited follow-through buying).<\/li>\n\n\n\n<li>The bulls\u00a0will need to create\u00a0consecutive bull bars closing near their highs and trading above the 20-day EMA to increase the odds of a retest of the April 12 high.<\/li>\n\n\n\n<li>The bear got a reversal from a wedge pattern (Dec 26,\u00a0Jan 26, and\u00a0Apr 12), an embedded wedge forming in the third leg up (Mar 1,\u00a0Mar 19, and\u00a0Apr 5) and a small double top (Apr 5\u00a0and\u00a0Apr 12).<\/li>\n\n\n\n<li>They then got a second leg sideways to down trading far below the 20-day EMA (May 8).<\/li>\n\n\n\n<li>They want another leg down completing the wedge pattern with the first two legs being the April 18 and May 8 lows.<\/li>\n\n\n\n<li>They need to break far below the bull trend line to increase the odds of lower prices.<\/li>\n\n\n\n<li>For now, the market may still be in the sideways to down leg.<\/li>\n\n\n\n<li>The market\u00a0is trading around the middle of the large trading range which can be an area of balance.<\/li>\n\n\n\n<li>Traders will see if the bears can create sustained follow-through selling breaking below the bull trend line or will the market continue to stall around the May 8 area.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: Crude Oil Futures The bears need a Crude Oil breakout below the bull trend line to increase the odds of the bear leg beginning. The bulls want a retest of the\u00a0April 12\u00a0high after the current pullback, even\u00a0if it forms a lower high. They want the 20-week EMA or the bull trend line to [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":208444,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[1892,136],"tags":[325],"class_list":{"0":"post-208307","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crude-oil","8":"category-analysis","9":"tag-crude-oil-futures","10":"entry","11":"override","12":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-Bears-Need-BO-Middle-of-TR.jpg","author_info":{"display_name":"Andrew","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/andrewa\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/208307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/2836"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=208307"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/208307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/208444"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=208307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=208307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=208307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}