Technical Analysis

Crude Oil (CL) Futures Analysis Proving Profitable

  • The hanging man from the previous analysis yielded over 767 points
  • Re-cap on Bearish $70 medium-term target
  • Short opportunities as CL rallies into the resistance zone

767 Points Profit

The hanging man we analyzed here provided a 767-point move as CL fell swiftly below $81. The pattern has played out but is still intact and adds to the bearish sentiment we see in CL on a technical level.

CL daily chart showing hanging man candlestick pattern with targets
CL Daily Chart

Re-cap on Bearish $70 medium-term target

As CL continues to slide, the price has retraced into the accumulation zone, which could be a great area to accumulate shorts. We are still bearish because of the 1-2-3 reversal we analyzed here. This pattern is still panning out, and we see no evidence of that going away for now. For us to change our bearish tone, prices need to rally above $86, which is above our accumulation zone; while prices trade below it, we remain bearish in our outlook.

Short Opportunities

Its well known amongst technical analysts that support often becomes resistance; the accumulation zone mentioned above would now act as resistance if that theory is to hold true. This gives short entries for bears between $81.53 and $85.88.

CL daily chart showing accumulation zone
CL Daily Chart


Bears remain in control, and there is no sign of bulls overcoming them any time soon. For us to become bullish, prices need to rally above $86. This is a technical outlook, and in today’s market, anything can happen due to European conflicts. We urge traders to set well-defined stop losses and not take unnecessary risks.