Jul 04 2018

NYMEX to take a pause from its recent peak

Crude Oil(NYMEX):- Oil (NYMEX) rally  from $63.57 to recent peak is now looking to take a pause. The black Gold is trading in an upward sloping trend channel as shown in below chart of daily frequency. At present the Oil is hovering close to the resistance of its uptrend channel and along with that, yesterday(03 July 2017) it had formed a single candlestick reversal pattern i.e. Spinning Top. Momentum indicators turned back after testing the overbought zone, 14-Day Relative Strength Index is at 67.23 mark and MACD is likely to give a bearish crossover with Signal line. Fibonacci tool is applied on the current rally from $63.57 to $75.24, which in turn giving us the golden retracement levels(50% and 61.8%) at $69.40 and $68.02. According to the applied technical studies, I feel that that in near term – Oil(NYMEX) should retrace or correct back at least towards $69.40 to $68.02 mark.