Correction Might Wait In Crude Oil Price, Stay Cautious

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Written By: Mohaimenul Jowarder
Reviewed By: Nikolas Papas
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    Summary:
  • Crude oil price is getting strong support from bullish trend line support. However, last week price drops by 0.8% creates uncertainity. Can the bulls win?

The crude oil price is getting strong support from the bullish trend line drawn from $51.0, low of 3rd October 2019. After the breakout of the triangle pattern in the 4-hour time frame, the Crude Oil bulls are eyeing to test the resistance level at $57.97. However, the crude oil price dropped by 0.8% before the closing of the last trading week. Things were further intensified after the 1.2% drop in USO (United States Oil Fund). Considering the last week’s drop, we might experience some delay before we see a test of the  resistance at $57.97. So, an imminent correction might take place in crude oil price.

Failing to regain the bullish momentum, the bears might push the crude index towards the nearest support at $54.61. This level might refuel the crude bulls since we have plenty of supportive candles. However, a clear break of the major support level at $54.61 might lead crude price towards $51.0 mark, the low of 3rd October at. But such an extensive bearish dive might require a further drop in USO stock or significant crisis in the energy sector. On the upside, the bulls need to clear the nearest resistance at $57.97 markets before establishing a fresh bullish tone. And a clear break of that level might push the Crude price towards the $63.23 mark which is the high of 16th September 2019.

Written By: Mohaimenul Jowarder
Reviewed By: Nikolas Papas

Mohaimenul Jowarder is an active Forex trader since 2011, and has been a Forex analyst since 2013. Over the years, he has contributed to several Forex trading and investing sites including Investing.com and Seekingalpha.com. His analysis and trading style is defined with position trading and price action trading system. His in-depth analysis greatly helps traders to make decisions in complex market condition.

Published by
Written By: Mohaimenul Jowarder
Reviewed By: Nikolas Papas