The Crude Oil (CL) daily chart shows a potential triangle structure in development which could drive to new lows. Find out with us what to expect from Crude Oil for the coming days.
The double test
The recovery observed in the last two weeks, and the intraday bearish rejection could be indicative of more weakness. We foresee a marginal upside to the area between $57 and $59.93 from where CL should continue the bearish path. This movement is not necessary but could appear as a “bull trap”. From the last Friday 08 Commitment of Traders (COT) report, we observe a marginal increase of long positions from large speculators. This variation could support the marginal upward move. The Wednesday 14 close is mostly bearish, which increase the bearish sentiment of our scenario.
The sell-off scenario will keep active as long as the price remains under $60.95. Our target area is between $$44.94 and $40.58.