Crude Oil Breaks Below Key Trend Line Support
2023.01.07 08:09
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Oil prices surged on news of the Russian invasion, as investors knew the war would significantly affect the energy sector.
But for how long?
Looking at the monthly chart below, it appears that it is “not for that long.”
Crude Oil Monthly Chart
Note that we highlighted crude oil’s bearish price reversal back in November.
As you can see, crude oil rallied above its 11-year high 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, the 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.
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