Chart Of The Day: Crude Oil On A Slippery Slope | investing.com – Investing.com

Chart Of The Day: Crude Oil On A Slippery Slope | investing.com – Investing.com

This article was written exclusively for Investing.com

was struggling to find support on Friday after a two-day sell-off. As the rally fizzled out, the key question is whether oil prices are now on a slippery slope, or whether this is just a pause in the uptrend? Whatever the case, expect to see at least a bit more selling, judging by the drops in other commodities and this week's bearish-looking price action in oil. 

Oil prices have been driven sharply higher from their historic drop last year, due to supply restrictions from the OPEC+ group and optimism about recovering demand as coronavirus lockdowns and other restrictions ease. The 's bearish trend had also supported buck-denominated oil prices. 

But just like and , crude oil is not immune to a rebounding dollar, with the greenback storming back to life in response to a hawkish Federal Reserve policy last week. The fact that several other commodities have also weakened means sentiment towards the sector has turned negative, hurting crude oil in the process. 

The daily oil chart shows a three-bar reversal pattern and a trend break. The base of this reversal is around $71.00, a level which was