WTI crude most likely completed an intermediate degree trend reversal. Sentiment recovered along prices from the late 2018 selloff. A magnificent 36% price gain accumulated from the interim low. An A-B-C zig-zag rally unfolded during that rally. The corrective pattern probably completed already. The early March high got reached on decreasing momentum and was not confirmed by the Brent contract. Both observations are typical for minor degree reversals. An impulsive drop of minute degree came off during the first trading week of March. It signals more downside ahead. Moreover, the attack was clearly directed at the black dotted trend support. Follow through to the downside is the next step towards confirming a trend change of intermediate degree.
The complete zig-zag interpretation of intermediate degree is in line with the macro picture. That shows equities, Yen, 10y Treasury yields, and the US Dollar close to a minor degree reversal. That implies headwinds for crude as well.
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