CLICK ON CHART TO ENLARGE
The decline in Crude Oil over the past 18-months has been historic, largest 18-month decline ever!
Crude remains in our opinion, the most important commodity in the world and its relentless decline is of concern, on a macro basis.
The chart above looks at Crude Oil and its Fear Index, on a monthly basis.
Fear index has peaked a few times when it hit lofty levels at line (1) above
Joe Friday, Just the Facts- So far this month, Crude Oil is creating a bullish reversal pattern (bullish wick pattern) at channel support at (2) above.
This is a monthly chart, so where it stands at the end of the month will be critical for this pattern. Crude could also be creating a bullish falling wedge pattern. To prove this pattern read is correct, Crude Oil needs to break above falling resistance line (3), which is still a large percentage above current prices.
Crude is testing support at the same time as stock indices in the States are doing the same below
CLICK ON CHART TO ENLARGE
From a Power of the Pattern perspective, I find it very interesting that Crude is testing support and that stock markets around the world, are doing the same. The 5-year rising bull trend in stocks, has NOT been broken, so far.
For sure, if support would give in Crude and the Stock market, bulls should be pretty concerned.
–
–
What is very ironic is all the China letdown etc. But none has really came out and just given the one simple fact first and then coordinate why things are the way they are. That simple fact is that China did not fail to use as much oil as they did the so called DRAGON BY THE FIRE BREATHING TAIL, they actually used more oil, so when you posture that fact in with all the crystal ball analysis things would play different rolls. Plus adding all the alternative energy vises the whole picture plays a whole new game.Although I do like the sanctions they have on Solar in the Capital, the smog has a huge reduction of there Solar use and yet we hear nothing while they make $ off of sending panels around the world. How ironic to pollute producing panels to help us please our govt. sanctions! Could have explained things different but wanted to sound as ignorant as our policies!