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Charts Search Catalyst to Spark This fall Breakout

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CRUDE OIL FORECAST 4Q 2019 – SUMMARY POINTS:

The value of crude oil consolidated additional inside its overarching wedge sample throughout the third quarter. Directing consideration to a weekly crude oil worth chart as we transition into This fall-2019 underscores the dominating wedge formation being etched out by the commodity; the sample turns into much more evident when specializing in worth motion since mid-2018 judging by the current collection of decrease highs and better lows.

CRUDE OIL PRICE CHART: WEEKLY TIME FRAME (DECEMBER 2016 TO SEPTEMBER 2019)

Chart created by @RichDvorakFX with TradingView

Crude oil costs may very well be anchored to technical confluence across the $58.00 zone famous by the 38.2% Fibonacci retracement of the commodity’s trading vary since February 2016 in addition to the downward sloping 20-SMA and 50-SMA. But, the 200-SMA on the weekly chart approaching $55.00 and short-term uptrend developed since costs bottomed out in December 2018 may current optimistic tailwinds all through 4Q-2019.

OIL VOLATILITY INDEX & CRUDE OIL PRICE CHART: DAILY TIME FRAME (DECEMBER 2018 TO SEPTEMBER 2019)

Daily OVX Price Chart

Chart created by @RichDvorakFX with TradingView

On the identical time, the current rise in oil volatility may maintain a lid on bullish prospects for crude oil costs contemplating the final rule of thumb that there’s a broad inverse relationship between implied volatility and an underlying asset.

DOWNLOAD THE COMPREHENSIVE DAILYFX This fall-2019 CRUDE OIL TECHNICAL FORECAST FOR FREE HERE

— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com

Join with @RichDvorakFX on Twitter for real-time market perception

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