US crude oil (CL) futures peaked at over $120 a barrel just over a month ago.
Since then, it has dropped nearly 23% and fallen back into the sell zone.
At this point, it looks like CL is set for another potential move, and we need to analyze it for the right direction.
So, let’s take a look at the crude oil chart and see where the market could be headed…
The CL Futures Market Review
Here’s how the chart is setting up for the crude oil futures contract (CL)…
The crude oil futures contract (CL) daily time frame is breaking the up trend line, and the market has entered into the sell zone.
There is a down sub Fibonacci with an extension below the market at price point 87.84, about -853 ticks below the market.
As long as the market stays in the sell zone, it will be a good idea to turn to the one hour time frame and to look for high prices in the sell zone.
The Bottom Line
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