- Showing a great example of 1-2-3 reversal pattern confirmation.
- The trade outlook appears bullish as bears lack conviction.
Update from last week
Last week we analyzed CL and mentioned that there was a chance we could see price drop a few points from $71 before rallying once more above the recent peak, as seen in the chart below. This is exactly what occurred and is a perfect example of a 1-2-3 reversal entry.
Outlook
At the moment, it is difficult to see a bearish outlook here as bulls appear to be in full control up until $81, where we approach the range that CL was trading in before the bearish break back in mid-March.
Bulls are targeting $81, and traders could ignore all short signals at this point if their analysis aligns.
Keep in mind that anything can happen, especially with a volatile commodity such as Crude Oil and recent economic events in the US affecting the Dollar.
