Oil Chart Signals Downside And Recession Ahead

The spot crude oil chart is looking very bearish on the bigger time frames. Oil is consolidating in a bear flag below two MAJOR trend lines. It looks like oil is capped in the near-term at $83-$85/bbl. In addition, should this weekly chart break down (as the bear flag indicators, oil could be headed sharply lower to the $60 level.

For the bearish nature of the chart to flip bullish, price must get above and hold above $85 for a full week. If that does not happen, probabilities strongly favor the downside, and likely soon.