{"id":209300,"date":"2024-05-26T01:30:00","date_gmt":"2024-05-26T08:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=209300"},"modified":"2024-05-25T11:42:50","modified_gmt":"2024-05-25T18:42:50","slug":"crude-oil-oo-pattern","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/crude-oil-oo-pattern\/","title":{"rendered":"Crude Oil OO Pattern"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: Crude Oil Futures<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The weekly chart formed a Crude Oil OO pattern (outside-outside) which means the market is in breakout mode. Crude Oil\u00a0is\u00a0currently\u00a0trading around the middle of the\u00a0large\u00a0trading range,\u00a0which is\u00a0an area of balance. The overlapping price action in the last\u00a03\u00a0weeks\u00a0also indicates that\u00a0the market is in a tight trading range.<\/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-OO-Pattern-TTR-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-OO-Pattern-TTR-Middle-of-TR-680x383.jpg\" alt=\"Crude Oil Weekly: OO Pattern, TTR, Middle of TR, Crude Oil OO Pattern\" class=\"wp-image-209450\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-OO-Pattern-TTR-Middle-of-TR-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-OO-Pattern-TTR-Middle-of-TR-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-OO-Pattern-TTR-Middle-of-TR-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-OO-Pattern-TTR-Middle-of-TR-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-OO-Pattern-TTR-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\u00a0week\u2019s\u00a0candlestick 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 an outside bear bar closing below the middle of its range and\u00a0closing below the 20-week EMA.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/crude-oil-stalled\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last week<\/a>, we said\u00a0that the odds slightly favor the market to trade at least a little higher. Traders will see if the bulls can create\u00a0a follow-through bull bar following last\u00a0week\u2019s\u00a0close above the 20-week\u00a0EMA.<\/li>\n\n\n\n<li>The market traded slightly higher on Monday but reversed lower for the rest of the week. Friday broke below last\u00a0week&#8217;s\u00a0low but reversed higher to close off the\u00a0low of the week.<\/li>\n\n\n\n<li>The bears got the third push down this week\u00a0completing\u00a0the wedge pattern (Apr 22, May 8, and May 24).<\/li>\n\n\n\n<li>The problem with the\u00a0bear\u2019s\u00a0case is that they have not yet been able to create a strong breakout below the bull trend line with\u00a0follow-through selling.<\/li>\n\n\n\n<li>They\u00a0will need to\u00a0create consecutive bear bars closing near their lows\u00a0and trading far\u00a0trading\u00a0below the 20-week EMA and the bull trend line to convince traders that the bear leg is underway.<\/li>\n\n\n\n<li>If the market trades higher, the bears want the bear trend line to act as resistance.\u00a0<\/li>\n\n\n\n<li>The bulls want a retest of the\u00a0April 12\u00a0high after the\u00a0current\u00a0pullback.<\/li>\n\n\n\n<li>They want the 20-week EMA or the bull trend line to act as support. If the market trades lower, they want a failed breakout below the bull trend line.\u00a0<\/li>\n\n\n\n<li>They want a reversal from a wedge (Apr 22,\u00a0May 8, and\u00a0May 24), a micro wedge (May 8, May 15, and May 24) and a higher low.<\/li>\n\n\n\n<li>They will need to\u00a0create strong bull bars trading far above the 20-week\u00a0EMA to increase the odds of a retest of the April high.<\/li>\n\n\n\n<li>Since this\u00a0week\u2019s\u00a0candlestick is\u00a0a bear bar closing below the middle of its range, it is a sell signal bar for next week\u00a0albeit\u00a0weaker (prominent tail below) and at a potential support area (bull trend line).<\/li>\n\n\n\n<li>The market formed an OO (outside-outside) breakout mode pattern.<\/li>\n\n\n\n<li>The bulls want a breakout\u00a0above\u00a0while the bears want a breakout below the OO pattern. The first breakout can fail 50% of the time.<\/li>\n\n\n\n<li>Traders will see if there is a breakout from either direction with follow-through buying or selling.<\/li>\n\n\n\n<li>The\u00a03\u00a0overlapping candlesticks trading above the bull trend line also indicate that the bear leg is stalling.<\/li>\n\n\n\n<li>If the bears continue to fail to push lower, we could see the market do the opposite and push higher instead in the weeks ahead.<\/li>\n\n\n\n<li>Crude Oil\u00a0is\u00a0currently\u00a0trading around the middle of the\u00a0large\u00a0trading range,\u00a0which is\u00a0an 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\u00a0sustained 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-Wedge-Embedded-Wedge-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-Daily-Wedge-Embedded-Wedge-Middle-of-TR-680x383.jpg\" alt=\"Crude Oil Daily: Wedge, Embedded Wedge, Middle of TR\" class=\"wp-image-209453\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Wedge-Embedded-Wedge-Middle-of-TR-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Wedge-Embedded-Wedge-Middle-of-TR-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Wedge-Embedded-Wedge-Middle-of-TR-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Wedge-Embedded-Wedge-Middle-of-TR-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Daily-Wedge-Embedded-Wedge-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>The Crude Oil market traded slightly higher on Monday but reversed lower for the rest of the week. Friday traded lower but reversed into a bull bar, closing near its high.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/crude-oil-stalled\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last week<\/a>, we said that traders will see if the bulls can\u00a0create consecutive bull bars trading far above the 20-day\u00a0EMA or\u00a0will\u00a0the market trades slightly higher but\u00a0stalls (perhaps around the bear trend line area) and reverses\u00a0back\u00a0below the 20-day EMA.<\/li>\n\n\n\n<li>The bulls see the current move simply as a pullback and want the bull trend line to\u00a0act as support.\u00a0<\/li>\n\n\n\n<li>They want a reversal from a wedge bull flag (Apr 18,\u00a0May 8, and\u00a0May 24) and\u00a0an embedded wedge(May 8, May 15 and May 24).<\/li>\n\n\n\n<li>The bulls\u00a0will need to\u00a0create\u00a0consecutive bull bars closing near their highs\u00a0and trading far above the 20-day EMA\u00a0to increase the odds of a retest of the\u00a0April 12\u00a0high.<\/li>\n\n\n\n<li>The bear got a three-legged pullback\u00a0(therefore a wedge &#8211; Apr 18,\u00a0May 8, and\u00a0May 24) trading\u00a0below the 20-day EMA.<\/li>\n\n\n\n<li>The problem with the\u00a0bear\u2019s\u00a0case is that they have\u00a0not been able\u00a0to create a strong breakout below the bull trend line.<\/li>\n\n\n\n<li>They need to break far below the\u00a0bull trend line to increase the odds of retesting the December low.<\/li>\n\n\n\n<li>If the market trades higher, they want the 20-day EMA or the bear trend line to act as resistance.<\/li>\n\n\n\n<li>The market formed a small triangle (in the last\u00a03\u00a0weeks)\u00a0which\u00a0is a\u00a0breakout mode pattern.<\/li>\n\n\n\n<li>So far, the bears have failed to create a strong breakout below the bull trend line. If this continues to be the case, we may see the market do the opposite and trade higher instead within a few weeks.<\/li>\n\n\n\n<li>If the market trades higher, traders will see if the bulls can\u00a0create consecutive bull bars trading far above the 20-day\u00a0EMA and the bear trend line.<\/li>\n\n\n\n<li>Or will the market trade slightly higher but\u00a0stall (perhaps around the bear trend line area or the 20-day EMA again) and reverse lower?<\/li>\n\n\n\n<li>The market\u00a0is trading around the middle of the\u00a0large\u00a0trading range\u00a0which\u00a0can be an area of balance.<\/li>\n\n\n\n<li>The overlapping price action in the last\u00a03\u00a0weeks\u00a0also indicates that\u00a0the market is in a tight trading range.<\/li>\n\n\n\n<li>Poor follow-through and reversals are hallmarks of a trading range.<\/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 class=\"wp-block-paragraph\">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 weekly chart formed a Crude Oil OO pattern (outside-outside) which means the market is in breakout mode. Crude Oil\u00a0is\u00a0currently\u00a0trading around the middle of the\u00a0large\u00a0trading range,\u00a0which is\u00a0an area of balance. The overlapping price action in the last\u00a03\u00a0weeks\u00a0also indicates that\u00a0the market is in a tight trading range. Crude oil futures The [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":209450,"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":["post-209300","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crude-oil","category-analysis","tag-crude-oil-futures","entry","override","shadow"],"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/05\/Crude-Oil-Weekly-OO-Pattern-TTR-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\/209300","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=209300"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/209300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/209450"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=209300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=209300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=209300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}