Crude Oil Forms A Bear Flag After A Historic Fall (CL)

Looking at the light crude futures market, we can see that oil has formed a bear pennant, after a historic fall of nearly 45%. Price is just above some key support, generated from previous pivot lows. If this bear pennant breaks to the downside, look for price to test the $42 level, followed by $39.19 and $37.75. A break above the bear flag will likely negate it as a flag, and that would put a test of the $50 level in play. Unless we see evidence of a break higher, the bias is to the downside.

Happy New Year Everyone!

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-