Crude Oil Sets Up For A Gap Fill Attempt At $41!

So, now that things are mildly returning to normal, and economic activity is beginning to ramp up, so too has the demand for oil. With that in mind, we can see that oil futures have returned from the depths of negative price action in hell, and have actually made a strong bounce to the upside. You can see a quasi-inverted head and shoulders formation, and crude has surpassed the 50 day moving average (in orange.)

If you've been following my oil charts, you know that I've been calling for oil to rise to $41.05 to fill the gap that it created over the weekend leading into March 9th. I think we could easily see oil rally up to the $41 level, but I do expect that gap fill to be massive resistance for the oil price. Also, just above that is the 200 day moving average (in purple.) That could be converging with the gap fill level by the time the price gets up there. If that ends up being the case, it would definitely increase the resistance. In any event, I expect that at an absolute maximum, the 200 day moving average should cap any upside rally attempts.

I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-