This is not an April Fools day joke! After surging into the front end of March, crude oil reversed course and headed lower by nearly 30% (from its high).
What? And this isn’t even an April Fools day joke.
Check out our past two articles on the crude oiil: We highlighted the potential for a peak over three weeks ago and followed up on the reversal earlier this week.
Following Joe Friday’s rules… “The facts, Ma’am. Just the facts”
As you can see, crude oil put in its largest bullish reversal during the coronavirus crash and is rivalling that reversal with a huge bearish one in March.
Crude oil has now entered a stealth bear market, as it is now more than 20% off its highs. And though prices are elevated, that reversal wick will likely serve as overhead supply for some time.
Considering gas prices, it seems like a poor April Fools day joke to say that crude oil is in a bear market. But perhaps this reversal will eventually lead to a little less pain at the pump. Stay tuned.