Are Crude Oil Prices Creating A Long-Term Double Top?
Chris Kimble | Aug 22, 2022 11:14AM ET
Consumers have taken notice of falling gasoline prices—and they like it.
But will gas prices continue to fall? For that to happen, consumers (and investors) will need to pay close attention to crude oil prices (which have been falling lately). And they should be aware of a very bearish potential chart pattern.
Below is a long-term monthly line chart of crude oil that highlights the prospects of a potential double-top pattern at point (1). As you can see, crude oil closed on a monthly basis at the same price it did 11 years ago (red arrow and line). And now it is reversing lower.
This move lower has also taken the price of crude oil below its uptrend support line at (2). If it closes the month below this trend line, it would be concerning.
This brings an interesting (and important) question to light: did the most important commodity on the planet double top 11 years later?
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