Brent Oil Daily Chart; Golden Cross; Bull Flag

Brent oil prints a golden cross today where the 50-day MA crosses up through the 200-day MA forecasting more upside joy ahead. The chart shows the 50 still 2 cents below the 200 but during the session it was above. Price retreated during the session so the 50 lost a couple pennies. It should clearly print the golden cross tomorrow and this week.

The death cross occurred in early June. As typically happens, the stock or index will usually reverse when the cross occurs and only move further in that direction if the initial move is extended. The death cross occurs in early June so the expectation is that price will actually pop, and it does, and oil started trending higher retaking the 50-day MA in July. The oil bears could not create lower lows for oil after the June low.

Now that the golden cross occurs, price will likely pull back to take a rest. The red lines show negative divergence and overbot stochastics and RSI all wanting price to move lower. The MACD line, however, wants another higher high in price after a pull back in this daily time frame. At that time, the MACD will likely show neggie d and indicate a more firm top in this daily time frame and a more extended move lower on tap. Price will likely jog lower for a day or two, then come back up to satisfy the MACD line. At that time, check to see if the MACD goes neggie d, if so, the top is in for this daily time frame.

The neon blue lines show a textbook two-leg bull flag. The first leg is from 53.0 to 44.5 an 8.5 point gain. Price then consolidates sideways to sideways lower forming the bull flag or pennant. Leg two then begins moving higher starting at 50-ish. Thus, the target is 58.5 and bingo, the pattern is satisfied. The WTIC oil 50-day MA is moving higher but probably a week or two from a golden cross if oil prices choose to move higher.

The Brent and WTIC oil weekly charts are stumbling sideways. Ditto the monthly charts. Oil may stumble and bumble sideways for many weeks and months ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.