I’ve been watching crude oil for a while now. Today I see signs that crude oil is getting ready for a big move, and I wanted to point it out to you.
On a daily chart, crude oil has been in consolidation for a while. Shown by a series of descending highs and ascending lows, its forming a nice pennant flag. The energy is building as the price “coils up” inside the flag region, setting the stage for the next big move.
The Hawkeye Perspective
According to the 6 Ways teaching we give our students, I identified a bullish break of consolidation. While this technically is called a trend run, crude price still needs to break the Hawkeye stops in order for us to confirm the up trend.
Finally, volume has to be present to support the move. Right now, we see above average buying volume on the daily, and declining selling volume on the weekly. This weekly selling pressure is not producing lower lows in price, which actually is a bullish sign.
Based on this and our Zones indicator, we expect to see a potential move of crude oil back up to 60, 63 or even 74 in time. Learn to trade the Hawkeye way.
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