Thursday's Market Minute: Is Oil Poised For An Uptrend?

Crude Oil futures are seeing a swift rejection this morning, stopping just short of their previous highs from July 8 and falling more than 4% in pre-market trading. The /CL contract is continuing a downward channel that began in early June and extends down along the highs from late June/early July.

But there could be relief on the horizon, as there are some bullish technical developments that occurred recently, such as a bullish Parabolic SAR crossover earlier this week. This indicator is used by traders to assess trend direction and set stop losses, so this could represent a shift to the upside. The Moving Average Convergence Divergence (MACD, which measures momentum) showed a bullish crossover as well.

However, there’s also some resistance to overcome in the form of the 21-day Exponential Moving Average and the 63-Day EMA, both of which are between 100 to 102. This is also roughly the point of the upper line of the previously mentioned downward channel, so this resistance confluence could be worth watching.

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