The rally in crude oil made new highs yesterday at 56.00 contrary to my expectation. The hourly chart above shows my current analysis of the situation.
I think the pair of resistance levels indicated on the chart will halt this rally if they haven’t already done so. The blue line is the ¾ division point of the first bear market down from the April 4 high at 58.28. This box is $8.64 high and the ¾ point stands at 56.13. The black line marks the April 25 top in crude which occurred at 56.00.
I still think this is a bear market in crude which will carry the market below $30 over the next couple of years.