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02/29/20 9:45 AM
OUR ANALYTICAL OUTLOOK AS OF THE CLOSE OF Fri. Feb. 28, 2020: NY Crude Oil Futures closed below our indicating ranges on the Daily level. The market closing today at 4476 is immediately trading down about 26% for the year from last year's closing of 6106. Up to this moment in time, this market has been rising for this market has been rising for 5 months going into February suggesting that this has been a bull market trend on the monthly time level. As we stand right now, this market has made a new low breaking beneath the previous month's low reaching thus far 4385 while it even trading beneath last month's low of 5097. FOCUSING ON TREND
Up to this moment in time, the market remains quite bearish below all our system support indicators with resistance starting at 4969. The broader cyclical system indicators are also in a bearish position while the long-term trend and cyclical strength are bearish.
The historical major high took place back in 2008 and we have then witnessed a bearish subsequent trend for 11 years. The correction since that high has been a 17% decline with the next general key area to watch would be 10102 and a closing beneath that would technically imply a more correction process unfolding on a bit more sustain basis near-term. There was a subsequent correction low that formed during 2016 and we have bounced some 71% which has been a respectable advance to date. We have elected both long-term yearly buy signals during this bounce currently which suggests that a pause in the decline was warranted.
Meanwhile, our technical resistance stands at 8653 and it will require a closing above this level to signal a breakout of the upside is unfolding. Nevertheless, our technical support lies at 4533 which the market is now trading beneath illustrating technical weakness.
From a timing perspective, a turning point is due come this month in NY Crude Oil Futures so be on guard as this unfolds. The last cyclical event was a high established back during January. Normally, this implies that the next turning point should be a low. However, the market has been neutral for right now, so caution is advisable. Watch the short-term trading levels for a hint of the next directional move into that target time frame. Last month produced a low at 5097 but closed on the weak side and so far, we have broken beneath last month's low 5097 closing yesterday at 4476. We now need to close below 5097 on a monthly basis to imply a continued decline is possible.
Some caution is necessary since the last high 6565 was important given we did obtain one sell signal from that event established during January. That high was still lower than the previous high established at 6660 back during April 2019. Nevertheless, at this time, the market is still weak trading beneath last month's low. Taking a broader view, this market is in a downward trend on all our indicators looking at the monthly level. We can see this market has been down for the past month. The previous high made during January on the Monthly level at 6565 remains significant technically and only exceeding that level on a closing basis would suggest a reversal in the immediate trend. The previous low of 4236 made during December 2018 on the Monthly level. However, we still remain above key support 5099 on a closing basis.
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