Bad News For Crude Oil Should Come From This Pattern
Chris Kimble | Jan 24, 2020 04:17PM ET
It’s a good idea for investors to be aware of key indicators and inter-market relationships.
Perhaps it’s watching the U.S. dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history and relationships matter. And it’s good to simply add these to our tool-kit.
Today, we look at another relationship that has signaled numerous stock-market tops and bottoms over the years, and especially the past several months – crude oil.
When crude oil tops or bottoms, it seems that the stock market follows along. And with crude reversing lower last week, it’s probably a good idea that investors pay attention here.
The past two times that crude oil has created a reversal pattern at the Fibonacci 61% retracement level, it fell at least 15% from the highs. Odds are strong that due to this pattern, oil will experience a similar decline again.
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