Oil prices surged on news of the Russian invasion, as investors knew the energy sector would be significantly effected by the war.
But for how long?
Looking at the “monthly” chart below of crude oil it appears “not for that long”.
Note that we highlighted crude oil’s bearish price reversal back in November.
As you can see, crude oil prices rallied and reached up above its price 11-years prior before reversing sharply lower. This double top was also confirmed by crude oil’s inability to close above the monthly closing high price 11 years prior.
To make matters worse for crude oil bulls, price is now breaking below its 2-year rising trend support line at (1). This breakdown is also important because (1) also marks the convergence of 11 and 20 year inflection trend lines. Yikes! All the more reason to stay tuned!
This article was first written for See It Markets.com. To see the original post CLICK HERE.
