After most of the fundamentals out there were priced into the market, crude oil turned into the most unpredictable asset to trade. Undoubtedly, when another major wave of the global financial crisis is picking up speed, the bearish bias is stronger than the bullish one over the long term. That said, the likelihood of oil prices seen further lows is higher than another major rally in he international market of crude oil. Still, if to consider the short-term and mid-term perspectives, the situation looks rather ambiguous.
According to the FTSE Department of Masterforex-V Academy, if to take a closer look at the Daily chart of Brent oil, we can clearly see that the bearish trend has already reversed and the price is currently rallying.
The same holds true for the Weekly chart of Brent oil. The bias is bullish.
However, the Monthly chart of Brent oil still indicates a longer-term downtrend even though there is a recovery against the major move. That said, the recovery may turn out to be a simple reaction as the bears have decided to take a timeout. However, if the bears are back in the game, the prices may start collapsing and reaching new lows in a matter of weeks if not days.
The bottom line is, the technical picture is way too ambiguous. The short-term and mid-term pictures contradict the longer-term one, which is dangerous to traders currently exposed to the market. The situation is going to continue at least until there is another major news release associated with crude oil. As we have already said, crude oil is the most unpredictable asset to date. So, the best option for now is to stay away from crude oil and monitor the situation till it clarifies.
