Crude oil is about to make a serious move
I almost forgot to post this chart originally posted by Blake Morrow.
It shows a consolidating pattern in crude oil futures over multiple time frames.
As the ranges have slowly narrowed over time, oil prepares for its next big move.
Whether this is higher or lower I have no idea, but I will be watching a variation of this chart everyday until and after the break.
As these are multi-year patterns here, resolution might signal the next big trend.
My guess is higher but this is an instance where I will be happy to react instead of anticipate because a new trend here, given the time span of the coiling, could be big and last for an extended period of time.
Just so you know.
Update: Blake Morrow checked in with me on his chart and offered a bearish directional view. He writes, “Thanks Phil, I think it is going lower. A few reasons: 1) production in north America is going up, 2) Crude should have followed global equity prices higher, but did not with the commodities complex therefore may follow lower, 3) with vehicles becoming more efficient, hybrids, electric, etc. - demand should continue to slow, keeping downside pressure on crude.