The Ides of March are in full effect. Investors have been rocked by war, inflation, and financial markets volatility.
At the center of all of this has been crude oil. Prices have surged due to war, and that has tied into the already running inflation theme… and consumers have felt the pain at the pump with gas prices.
Is there a light at the end of the tunnel? Perhaps.
Could crude oil be peaking? Three weeks ago, we shared an article about the potential of a bearish monthly price reversal. Crude oil had pulled back from its early month peak, leaving about a $10 wick (at the time). That reversal wick is now $25.
Just as 2020 produced the largest bullish monthly reversal (following the covid crash), 2022 may be producing the largest bearish monthly reversal.
With 1 day left in the month, we are eyeing prior resistance ($113 and $106). A close back below either level would be bearish… and a dose of good news for rising gas prices! Stay tuned!