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Weekly Crude Oil Bear Entry Bar

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Market Overview: Crude Oil Futures

The market formed a weekly Crude Oil bear entry bar testing near the October 29 low. The bears must create follow-through selling to increase the odds of a retest and breakout below the triangle. The bulls want the October low or the bottom of the triangle to act as support.

Crude oil futures

The Weekly crude oil chart

Crude Oil Weekly - Bears Need Follow-through Selling, Weekly Crude Oil Bear Entry Bar
  • This week’s candlestick on the weekly Crude Oil chart was a bear bar closing near its low.
  • Last week, we said that the overlapping candlesticks indicate the market is in a tight trading range. Traders would see if the bears could create a strong entry bar or if the market would continue to stall and trade sideways to up in the next few weeks instead.
  • The bears got a strong entry bar testing near the October 29 low.
  • They see the recent move (Nov 7) as a pullback.
  • They want a retest of the October low and the bottom of the triangle from a double top bear flag (Oct 24 and Nov 7) and a lower high.
  • They must create follow-through selling to increase the odds of a retest and breakout below the triangle.
  • If the market trades higher, they want the bear trend line or the 20-week EMA to act as resistance.
  • The bulls see the current move as a pullback and want a retest of the October 8 high.
  • They want a reversal from a wedge bull flag (Oct 1, Oct 29 and Nov 15).
  • They must create bull bars trading above the 20-week EMA to increase the odds of testing the October 8 high.
  • If the market trades lower, they want the October low or the bottom of the triangle to act as support.
  • Since this week’s candlestick is a bear bar closing near its low, it is a sell signal bar for next week.
  • For now, the market may still trade at least a little lower.
  • Traders will see if the bears can create more follow-through selling.
  • Or will the market trade slightly lower but stall around the October or September lows area instead?
  • The lower third of the large trading range can be the buy zone of trading range traders.
  • The market is in a large trading range (Trading range high: September 29, Trading range low: May 4).
  • Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction with sustained follow-through buying/selling.
  • The overlapping candlesticks indicate the market is in a tight trading range.
  • Poor follow-through and frequent reversals are the hallmarks of trading range price action.

The Daily crude oil chart

Crude Oil Daily - DT BF or DB BF - Bears Need Follow-through
  • The market traded lower on Monday followed by a sideways pullback. Friday broke below the small pullback closing near the week’s low.
  • Last week, we said that traders would see if the bears could create another leg down to retest the October 29 low or if the market would stall and trade sideways to up in the next few weeks instead.
  • The bears created another leg down to retest the October 29 low.
  • They saw the move last week (Nov 7) as part of a two-legged pullback.
  • They got a reversal from a double top bear flag (Oct 24 and Nov 7).
  • The next targets for the bears are the October 1 and September 10 lows.
  • If the market trades higher, they want the 20-day EMA or the bear trend line to act as resistance, forming a wedge bear flag with the first two legs being October 24 and November 7.
  • The bulls see the current move (to Nov 15) as a deep pullback.
  • They want a reversal from a wedge bull flag (Oct 1, Oct 29 and Nov 15) and a higher low major trend reversal.
  • They want another leg up to retest the top of the triangle.
  • The bulls must create consecutive bull bars closing near their highs, trading far above the 20-day EMA to increase the odds of a retest of the October 8 high.
  • So far, the candlesticks in the last 5 weeks have a lot of overlapping ranges which indicates tight trading range price action.
  • Poor follow-through and reversals are hallmarks of a trading range.
  • For now, traders will see if the bears can create a breakout below the October 29 low, testing the October 1 and September 10 lows.
  • Or will the market stall around the October or September lows area and trade sideways to up in the next few weeks instead?
  • The lower third of the large trading range can be the buy zone of trading range traders.
  • The middle of the trading range is an area of balance and a magnet.
  • Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction with sustained follow-through buying/selling.

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