Crude oil continues to consolidate – is it forming a bottom?
The crude oil futures rebounded by 1.02% on Friday, but the move essentially extended its short-term consolidation following recent declines. Last Wednesday, prices dropped to a low of $65.22 - the lowest level since the September 10 low of $65.27 last year. This decline was driven by weak economic data and geopolitical uncertainty.
Thursday’s and Friday’s rebounds suggest the beginning of a short-term consolidation. Today, oil prices are up 0.7%, moving higher yet still remaining within their recent range.
Conclusion
Crude oil is consolidating following its recent pullback. The rebound was supported by a weaker USD, but no clear bullish signals are evident.
Is this a good time to open a short position? I don't think so - the market is approaching strong medium-term support levels and could move sideways or rebound.
For now, my short-term outlook is neutral.
Here’s the breakdown:
- Crude oil is still moving sideways, consolidating after its recent declines.
- In my opinion, the short-term outlook is neutral.
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Thank you.
Paul Rejczak,
Stock Trading Strategist