{"id":209749,"date":"2024-06-02T01:30:00","date_gmt":"2024-06-02T08:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=209749"},"modified":"2024-06-01T12:07:53","modified_gmt":"2024-06-01T19:07:53","slug":"weekly-crude-oil-tight-trading-range","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/weekly-crude-oil-tight-trading-range\/","title":{"rendered":"Weekly Crude Oil Tight Trading Range"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: Crude Oil Futures<\/h2>\n\n\n\n<p>The market formed a weekly Crude Oil tight trading range in the form of 4 overlapping candlesticks. The bears see the tight trading range simply as a sideways pullback and want another strong leg down. The bulls 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.<\/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>Monthly<\/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\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1-680x383.jpg\" alt=\"Crude Oil Monthly: LH MTR, Wedge Bear Flag, Bear Need FT\" class=\"wp-image-209804\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Monthly-LH-MTR-Wedge-Bear-Flag-Bear-Need-FT-1.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 May monthly Crude Oil candlestick was a bear bar closing near its low.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/crude-oil-lower-high\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last month<\/a>, we said that slightly favor the market to trade at least a little lower. Traders will see if the bears can create a follow-through bear bar closing below the 20-month EMA.<\/li>\n\n\n\n<li>The bears managed to create a follow-through bear bar testing the 20-month EMA, but it did not close below it.<\/li>\n\n\n\n<li>They got a reversal from a lower high\u00a0major\u00a0trend reversal (Apr 12) and a wedge bear flag (Nov 7, Sep 28, and Apr 12).<\/li>\n\n\n\n<li>They want the bear trend line to act as resistance. So\u00a0far\u00a0this is the case.\u00a0<\/li>\n\n\n\n<li>Next, they want a close below the 20-month EMA with sustained follow-through selling.<\/li>\n\n\n\n<li>They want a bear leg to retest the December low.<\/li>\n\n\n\n<li>The bulls see the pullback (Sept to Dec) simply as a deep pullback and hope to get a retest of the September high.<\/li>\n\n\n\n<li>They got a reversal from a higher low\u00a0major\u00a0trend reversal (December) and a double bottom bull flag (May 4\u00a0and\u00a0Dec 13).<\/li>\n\n\n\n<li>While the market traded higher, the bulls\u00a0were not able to\u00a0get a\u00a0strong\u00a0breakout above the bear trendline. The bull leg formed a lower high.<\/li>\n\n\n\n<li>The bulls hope that the current sideways-to-down move is simply a pullback and want at least a small retest of the\u00a0April 12\u00a0high.<\/li>\n\n\n\n<li>They want the 20-month EMA to act as support.<\/li>\n\n\n\n<li>If the market trades lower, they want the bull trend line to act as support.<\/li>\n\n\n\n<li>Since May was a bear bar closing near its low, it is a sell signal bar for June.<\/li>\n\n\n\n<li>Odds slightly favor the market to trade at least a little lower.<\/li>\n\n\n\n<li>Traders will see if the bears can create a follow-through bear bar closing below the 20-month EMA.<\/li>\n\n\n\n<li>Or will the market continue to stall around the 20-month EMA area?<\/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>The market is trading around the 20-month EMA, which is around the middle of the\u00a0large\u00a0trading range. It can be a magnet and an area of balance.<\/li>\n<\/ul>\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\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1-680x383.jpg\" alt=\"Crude Oil Weekly: Expanding Triangle, TTR, Middle of TR, Weekly Crude Oil Tight Trading Range\" class=\"wp-image-209807\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1.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> was a bear bar closing near its low with a long tail above and\u00a0closing below the 20-week EMA.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/crude-oil-oo-pattern\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last week<\/a>, we said that traders will see if there is a breakout (from the OO pattern) from either direction with follow-through buying or selling. The first breakout can fail 50% of the time.<\/li>\n\n\n\n<li>The market broke above the OO pattern earlier in the week but reversed lower from Wednesday onwards.<\/li>\n\n\n\n<li>The bears see the tight trading range (last 4 weeks) simply as a sideways pullback and want another strong leg down (with the first leg being the April 5 to May 8 move).<\/li>\n\n\n\n<li>They want the 20-week EMA and the bear trend line to act as resistance. So far this is the case.<\/li>\n\n\n\n<li>The bears have managed to create 2 consecutive closes below the 20-week EMA.<\/li>\n\n\n\n<li>If the bears can create a strong follow-through bear bar trading far below the May 24 low, it will increase the odds of another strong leg down lasting a few weeks.<\/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>The problem with the bull\u2019s case is that they have made repeated attempts to break above the 20-week EMA in the last 4 weeks but were not able to create sustained follow-through buying.<\/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 near its low, it is a sell signal bar for next week\u00a0but at a potential support area (bull trend line).<\/li>\n\n\n\n<li>The market is forming a broadening triangle. Traders will see if the bears can create a strong retest and breakout below the May 24 low.<\/li>\n\n\n\n<li>If the bears can create a strong breakout below the May 24 low with follow-through selling, the odds of a retest of the December low will increase.<\/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>The\u00a04\u00a0overlapping candlesticks indicate that the market is in a tight trading range. It is also trading around the middle of the large trading range. It is 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\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<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 market formed a weekly Crude Oil tight trading range in the form of 4 overlapping candlesticks. The bears see the tight trading range simply as a sideways pullback and want another strong leg down. The bulls want the 20-week EMA or the bull trend line to act as support. [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":209807,"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-209749","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\/06\/Crude-Oil-Weekly-Expanding-Triangle-TTR-Middle-of-TR-1.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\/209749","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=209749"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/209749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/209807"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=209749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=209749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=209749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}