A bullish scenario for crude oil begins by reclaiming key former support level of 94.50. Notice that during the recent sell-off in risk assets, the 14-period RSI never hit oversold conditions. pic.twitter.com/31LynVIx34
— Alfonso Depablos (@AlfCharts) August 25, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a daily candlestick chart of Crude Oil over the past year. Crude Oil is back above a key level around $94.50. It broke below it earlier this month, but that move is beginning to look like a failed breakdown. As we know, failed breakdowns often lead to sharp moves higher. Alfonso points out that RSI never even reached oversold conditions, despite ‘correcting’ 30% this Summer. The inability to reach oversold conditions speaks to the strength of this trend. This is bad news for consumers at the pump, but good news for Energy stocks.