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Weekly Crude Oil Follow-through Bull Bar

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Market Overview: Crude Oil Futures

The market formed a weekly Crude Oil follow-through bull bar. The bulls need to create more bull bars trading above the April 23 high to increase the odds of the bull leg beginning. The bears see the current move as a pullback and want a reversal from a double top bear flag (Apr 23 and May 13).

Crude oil futures

The Weekly crude oil chart

Crude Oil Weekly - DT Bear Flag Bulls Need FT, Weekly Crude Oil Follow-through Bull Bar
  • This week’s candlestick on the weekly Crude Oil chart was a bull bar closing slightly above the middle of its range with a long tail above.
  • Last week, we said traders would see if the bulls could create a follow-through bull bar or if the market would trade slightly higher, but stall around the April 23 high or the 20-week EMA instead.
  • The bulls got a follow-through bull bar but have not yet traded above the April 23 high.
  • They see the recent move as a sell vacuum and a bear leg within the trading range.
  • They want a reversal from a wedge pattern (Mar 5, Apr 9, and Mar 5) and a higher low major trend reversal (May 5).
  • They hope to get a retest of the middle of the trading range (around the $67 area).
  • They need to create more bull bars trading above the April 23 high to increase the odds of the bull leg beginning.
  • The bears got a 3-legged bear leg (Mar 5, Apr 9, and Mar 5) testing the bottom of the trading range.
  • They see the current move as a pullback and want a reversal from a double top bear flag (Apr 23 and May 13).
  • If the market trades higher, they want the April 23 high or the 20-week EMA to act as resistance.
  • While the selloff to April 9 and May 5 lows was strong, it could still be a sell vacuum and a bear leg testing the bottom of the trading range.
  • The market remains in a large trading range.
  • Crude oil trades around the lower third of the trading range, which can be the buy zone for trading range traders.
  • Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction with sustained follow-through buying/selling.
  • That means selling in the upper third and buying in the lower third of the trading range.
  • For now, traders will see if the bulls can create another follow-through bull bar, breaking above the April 23 high.
  • Or will the market stall below the April 23 high, forming a double top bear flag instead?
  • Poor follow-through and frequent reversals are hallmarks of trading ranges.

The Daily crude oil chart

Crude Oil Daily - DT Bear Flag Bulls Need FT Buying
  • The market traded higher early in the week. Thursday formed a pullback to the 20-day EMA but lacked follow-through selling. Friday was an inside bull bar.
  • Last week, we said traders would see if the bulls can create more follow-through buying trading far above the 20-day EMA and the April 23 high, or if the market would stall around the 20-day EMA or the April 23 high area, followed by another leg down.
  • So far, the market is trading above the 20-day EMA but has yet to break above the April 23 high.
  • The bulls see the recent move as a sell vacuum and a bear leg within the trading range.
  • They want a reversal from a wedge pattern (Mar 5, Apr 9, and May 5) and a higher low major trend reversal (May 5).
  • They want a retest of the middle of the trading range and the bull leg to begin.
  • If the market trades lower, they want it to form a higher low (vs May 5 low).
  • They need to create a breakout above the April 23 high to increase the odds of testing the middle of the trading range.
  • The bears got a 3 pushes (Mar 5, Apr 9, May 5) bear leg within the trading range.
  • They see the current move as a pullback and want the 20-day EMA or the April 23 high to act as resistance.
  • They want a reversal from a double top bear flag (Apr 23 and May 13).
  • They must create strong bear bars trading below the 20-day EMA to show they are back in control.
  • The market currently trades around the lower third of the large trading range, which can be the buy zone of trading range traders.
  • Traders will BLSH (Buy Low, Sell High) within the trading range.
  • That means buying in the lower third and selling in the upper third of the trading range.
  • For now, traders will see if the bulls can create more follow-through buying, breaking above the April 23 high.
  • Or will the market stall below the April 23 high area, followed by another leg down instead?
  • Poor follow-through and frequent reversals are hallmarks of a trading range.

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