Is oil signalling a recession?
Oil has really started to free fall.
The death cross on the daily chart has occurred. this is where the 50 MA intersects with the 200 MA in a downtrend.
This often implies more downside to the medium and long term but is often a great short term long signal.
Usually when you get this signal the market makers bounce the stock or commodity a bit before taking it lower.
We are hitting a massive multi year trend line going back to 2022 that should act as some support.
XLE looks ready for 1 more down leg before a swing tradable low is in.
Energy does have a tendency to fall precipitously so understanding oil can keep falling if investors fear the worst or a recession.
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