I started out with the aim of writing about commodities but got engrossed in the interplay of two indexes and an ETF all related to crude oil.
The first chart to be examined is the crude oil index $XOI. I've noted previously that the crude oil index $XOI has been in a bearish ascending wedge since August and today made contact with the lowermost support line. If this is part of a five wave ascent we should see it fall to around 1167 before turning back up. I've drawn in what this ascending channel may look like but any breach of the lowermost channel line and we'll need to re-think this forecast.