Good morning Traders!
The events of the last couple of weeks has shaken investors confident, and the odds placed on a recession (rather than a soft landing) has risen substantially.
Crude Oil
Crude Oil, which is sensitive to recession fears, has been in a sideways market since the lows it reached in December 2022. The market has finally broken below the consolidation area, and continued lower to trade, and close below the December 2022 lows.
The Weekly chart is in a confirmed downtrend, where as on the Monthly chart, the push lower looks more like a deeper pullback than a change of trend.
I’ll be looking for a pullback to release some of this strong selling pressure, into the breakout level around the area of 72.50, then I’ll be looking for a rollover setup. Next potential area of strong S/R may be around the Monthly chart swing Higher Low, around the level of 62.00
Happy Trading!
