Oct 16 2018

Crude Oil (NYMEX) – Moving towards its major support zone

As we have seen a continuous fall of Crude Oil after the Double Top reversal pattern, formed on the daily chart. The oil prices likely to halt its decline at the major support zone (solid black colored trend-line) approx between 69-70$ a barrel. One can notice on the chart about the mentioned support area, earlier the region proved to be a rock solid. As most of the times price action bounced back after reaching towards that zone, so that’s why we are assuming the same to happen (History tends to repeat itself) soon. The oil temporary has stopped its losses on a immediate support of 50-day Exponential Moving Average, but that doesn’t seem to be as Solid as the above mentioned demand zone. Relative strength index (14 days) is at 47.34 and is trying to reach its oversold territory. Average Directional Index (ADX) is not even supporting to the recent oil fall, as the index turned down from 48.71 mark.

According to the studies we are expecting a bounce back from 69-70$, for a bull move towards 75-76$ per barrel.