Bearish indicators on oil price

April 3, 2017 01:10 PM

WTI crude oil had a nice rally last week, but I believe that rally will stall and the oil price will come back down. The $50 level may be a center point for the price tug-of-war, as there are competing fundamental stories out there, but technically I see some bearish indicators on the weekly chart. I would not be surprised to see oil head below $49 again soon.

The S&P 500 futures failed at the key 2362 area, and are down .5% today to 2348. They may trend lower into the non-farm payrolls number on Friday. The daily indicators are mixed to slightly bearish in my opinion.

Gold has defied my expectations for a sustained sell-off, but I still believe it's coming. Gold has been consolidating in the $1,250's recently and may wait until Friday to make a breakout from this range.

About the Author