Crude Oil has experienced a bearish breakout from a pennant on the daily chart. The market has retested the lower border after bouncing off the 66.00 support level.
Crude Oil Key Levels
Demand Levels: 70.20, 66.00, 62.00
Supply Levels:83.20, 89.00, 92.80
Crude Oil Long-Term Trend: Bearish
Crude Oil formed a giant double-top pattern from September to November. Buyers entered at 83.20 in anticipation of a bullish reversal. The attempt failed as the ascent was unable to shoot beyond the previous high at 92.80. The daily candles fell below the Moving Averages (periods 9 and 21). The previous support level of 83.20 was also violated. Three white soldiers ascended to test the neckline of the double tops at 83.20.
The market remained in long-term consolidation from December until this month. The Moving Averages continuously crossed sideways to show the consolidation. Without waiting for the terminal point of the Pennant chart pattern, a breakout played out successfully on the daily chart. On March 13th, three white soldiers appeared one after the other for an impulsive price drop. The price fell to the 66.00 support level. The Stochastic and the RSI (Relative Strength Index) are correlated to show an oversold market.
Crude Oil Short-Term Trend: Bullish
The market structure has turned bullish on the 4-hour chart. While the RSI is gently graduating to indicate a bearish trend on the lower timeframe, the Stochastic has reached the oversold level. The daily chart is just about recovering from the oversold level. The market is currently ascending on the lower timeframe and retracing on the higher timeframe for a retest of the low border of the pennant. The Bears at the significant level of 70.20 may be just enough to keep the price decline going.
You can purchase Lucky Block – Guide, Tips & Insights | Learn 2 Trade here. Buy LBLOCK
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
