I read an interesting article by Kathy Lien, the famous currency strategist, yesterday. She indicated that crude oil could drop another $10/barrel, and the longer-term uptrend would still remain intact. I decided to take a look at the weekly chart for crude oil, which I have shown here. She was right. The Uptrend for crude oil is still intact despite the strong red candle so far for this week. On the the bullish side, the 7-period and 21-period moving averages are still diverging.Even still, on the bearish side, I notice that the latest highs for crude oil occurred within the Bollinger Bands, a sign of diminishing upward momentum, and the Klinger Volume indicator has just turned red for the first time in months, although it is stillwell above its moving average as well. The stochastic indicator has been overbought for many weeks, and the MACD is also overbought. Only time will tell.
Crude oil is $1/barrel higher during overnight trading.
