January Crude oil has formed a bullish reaction swing over the ascending median line. The market dipped down to the 20-day EMA just minutes before a 9.85 million barrel drawdown was reported in the EIA weekly petroleum supply and demand report. This caused Crude oil to rally off the 20-day EMA and trade above the prior day’s high. The price action has formed a bullish reaction swing with the potential to advance toward the upper parallel line. However, Crude oil needs a trade above 89.49 to confirm the pattern and trigger the buy.
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