Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[DiscoverGold]

NY Crude Oil Futures - New Pattern Forming »» Weekly Summary Analysis
By: Marty Armstrong | October 3, 2020

NY Crude Oil Futures closed below our indicating ranges on the Daily level. The market closing today at 3705 is immediately trading down about 39% for the year from last year's settlement of 6106. At the moment, this market is currently trading below last month's close and it had been weak for the past 2 months and if the market continues to remain beneath the previous month's close of 4022, then it will be in a weak position just yet. This price action here in October is reflecting that this is within the scope of a bearish reactionary move on the monthly level thus far.

The NY Crude Oil Futures has continued to make new historical highs over the course of the rally from 2016 moving into 2020. Noticeably, we have elected two Bullish Reversals to date. Currently, the market has dropped back and is trading beneath the previous year's close warning of a potential correction in play. This is especially true since we are facing an outside reversal to the downside by penetrating the previous year's low as well.

This market is still holding positive on our yearly indicating models with overhead system resistance and underlying system support, it remains in a negative poisition on all other levels from the quarterly down to weekly. In fact, the quarter models are in a bearish position with important overhead system resistance whereas we still have underlying support remaining on the monthly and weekly levels.

The perspective using the indicating ranges on the Daily level in the NY Crude Oil Futures, this market remains in a bearish position at this time with the overhead resistance beginning at 3835.

On the weekly level, the last important low was established the week of September 7th at 3613, which was down 2 weeks from the high made back during the week of August 24th. We have seen the market drop sharply for the past week penetrating the previous week's low and it closed beneath that low which was 3887. This was a very bearish technical indicator warning that we have a shift in the immediate trend. We are still trading neutral on the Weekly Momentum Indicators and this is a warning that initial support has been breached. This strongly implies we should pay close attention now to the Weekly Bearish Reversals. If we begin to elect Weekly Bearish Reversals, then we are dealing with a more sustainable near-term correction.

Interestingly, the NY Natural Gas Futures has been in a bullish phase for the past 3 months since the low established back in June.

Some caution is necessary since the last high 4378 was important given we did obtain three sell signals from that event established during August. That high was still lower than the previous high established at 6565 back during January. Critical support still underlies this market at 1804 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible. Nevertheless, at this time, the market is still weak.

DiscoverGold

Click on "In reply to", for Authors past commentaries