While I have been bearish on Crude for some time, I simply can’t ignore any longer the Inverse Head & Shoulder patterns on the WTIC and XLE Oil Producer charts any longer now that Crude is starting to breach my red 3 year down trend line this week. My attached charts are screaming out to me that we are on the cusp of a new Bull Market in Crude Oil.
Don’t ask me why from a fundamentals standpoint but perhaps Mid-East turmoil will play some role. Below are four charts. The first two are on WTIC crude and the last two are on XLE, the Oil Producer ETF which broke out of a long downtrend in Mid-August and is forming what looks like a Bull Flag halfway pattern. Because we are now 4 months into Crude’s Intermediate uptrend, I still think that Crude needs to find its next ICL before this chart really gets moving but I plan to be on the bus at the next ICL.