Crude oil up-date 16/7/2022

 I have told myself to maintain one entry per week, and just a while ago, I up-loaded an entry on A &P 500 and Dow Jones 30 comparison, so it is a little strange that I have a second entry today addressing Crude Oil.

Well, my original intention as an entry on crude oil, the S & P read was actually the distraction. I did an entry on Crude oil on 26th June 2022 and there has been some development since. While it went the direction that I have predicted, I am concern with the bar formation.

Fig.1 Crude oil weekly chart

On both weeks since 25ht June 2022, Crude Oil fell in the beginning of the week, only to recover back to mid-point by the end of the week, leading to formation of long tail.

While the closing for week of 3rd July 2022 was due to the 21-week moving average and closing for week of 10th July 2022 due to re-bounce from the 55-week moving average. Long tails are showing for both weeks.

What does this mean to me?

I believe it is coming close to a support level, leading to its consistent reaction every time it trends downward. However, it does not translate to a reversal yet. 

I mentioned the neckline at 92 on my last entry. Crude Oil has broken and tested this level this week, and the general direction is still down with momentum, what we might experience from this counter is a correction or congestion.

Until this point, the support level of 86.11 as recorded last round is still valid.

No matter what, when I pump gas for my car today, I am happier, the price at the station has just been adjusted downward. It is certainly more wonderful that oil can go down further.