The multi-year supply driven bear market for Crude Oil (CL/) may be on the verge of ending, at least in the near-term, as the commodity has returned to a positive trend for the first time since July 31, 2014,
indicating that demand has begun to outpace supply. From a technical a standpoint, the collapse in the price of oil began back in 2014 when CL/ violated its bullish support
line at the $99 level. Crude Oil then fell to a bottom of $27.00, which it hit in January and February of this year. CL/ has since given three
consecutive buy signals, the last of which at $42.00, taking CL/ through the bearish resistance line. While CL/ was in a negative trend, it lost -56.98% of its value while the
broad-based Continuous Commodity Index was down
-25.25% and the S&P 500 Index posted gains of 6.79%. In tandem with the positive trend change, comes a reversal in monthly momentum to the upside, suggesting the potential for further gains for Crude
Oil. The commodity is overbought here at 63%, based on a ten-week trading band.
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