Are Crude Oil Prices Ready To Rise Again?

I’ve been watching Crude Oil very closely to see if we’d ever get a reversal as expected off these lows.  Let’s take a look at the Daily Chart to see where we are and whether a possible reversal to the upside might be developing.

(Click for larger image)

Are we finally getting that reversal that seems so obvious to everyone?  Maybe.

Price is developing one of the most massive multi-swing positive momentum divergences I’ve ever seen and it appears that odds are decent that price will break-above the falling 50 day EMA here.

Price is just slightly above both the 20 and 50 day EMAs, but be aware that the moving averages remain in the most bearish orientation possible and any move up would by definition be a counter-trend move.

Price has found support above the $35 index level and resistance seems to be forming a price arc about the 50 day EMA as price has traveled to new lows.

Crude Oil certainly isn’t guaranteed to go up from here, but it is perhaps setting up a decent to excellent risk/reward ratio - that of strong support about the $35 level and wide-open space to run-up should we actually break and hold above $45.

Keep watching Crude for any signs of positive life and do further analysis on your own into this interesting but tricky commodity.

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