{"id":23747,"date":"2025-04-15T07:30:00","date_gmt":"2025-04-15T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23747"},"modified":"2025-08-22T08:28:02","modified_gmt":"2025-08-22T12:28:02","slug":"heres-why-its-time-to-buy-oil","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/heres-why-its-time-to-buy-oil\/","title":{"rendered":"Here\u2019s Why It\u2019s Time to Buy Oil"},"content":{"rendered":"

It\u2019s time to buy oil.<\/p>\n

The price of the gooey, black stuff has been crushed \u2013 falling from over $78 per barrel in early January to as low as $60 last week.<\/p>\n

The \u201cexperts\u201d are bearish. They\u2019re pointed to bloated inventories and fears of a global recession. And they\u2019re telling us the price of oil is headed lower.<\/p>\n

But my favorite oil trading indicator just flashed a \u201cbuy\u201d signal.<\/p>\n

So, I\u2019m ignoring the \u201cexperts\u201d and suggesting oil will be trading higher over the next several weeks.<\/p>\n

Take a look at this chart of the CBOE Crude Oil Volatility Index (OVX) along with its Bollinger Bands\u2026<\/p>\n\n\n

\"\"<\/figure>\n\n\n

Similar to the stock market’s Volatility Index (VIX), the OVX provides buy and sell signals whenever the price of oil pops outside of its Bollinger Bands (solid blue lines).<\/p>\n

Bollinger Bands measure the most probable trading range for a stock or an index. When a chart pokes outside of its Bollinger Bands, it indicates an extreme move – one that is likely to reverse.<\/p>\n

On the OVX chart, we get buy signals when the index rallies above its upper Bollinger Band.<\/p>\n

We’ve had six previous buy signals (blue arrows) over the past year.<\/p>\n

Here’s how the price of oil behaved following those signals…<\/p>\n\n\n

\"\"<\/figure>\n\n\n

The price of oil rallied immediately following all previous buy signals over the past year (blue arrows).<\/p>\n

Sometimes the rallies were significant, lasting several weeks \u2013 like the rally in June that pushed oil 15% higher in five weeks. Sometimes the rally ran out of fuel within just a few days \u2013 like the April buy signal which produced a measly 2% gain.<\/p>\n

But in every case, it was better to be a buyer of oil than it was to be a seller when the OVX generated a buy signal.<\/p>\n

Early last week, the OVX closed above its upper Bollinger Band. It closed back inside the bands on Thursday. So, we have a new buy signal for oil.<\/p>\n

And based on the previous success of this indicator, traders should be looking for higher oil prices in the days and weeks ahead.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
Editor, Market Minute<\/em><\/p>\n

\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff\u2019s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

My favorite oil trading indicator just flashed a \u201cbuy\u201d signal.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-23747","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23747"}],"version-history":[{"count":2,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23747\/revisions"}],"predecessor-version":[{"id":25031,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23747\/revisions\/25031"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23747"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23747"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23747"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23747"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}