Crude Oil Price Analysis
The favorite quote ” Trend is your friend ” in a forex market help traders to take best positions.Crude oil price chart in a longer term is in a bullish mode, and current oil price is at the support level of a trend. Oil is trading near to its trend support level which is the watching area for traders to jump in. Yesterday closing below the support level indicates a bit confusion either oil has been breaking its support or its a fake break.We will discuss the confirmation points to discuss the breakout or fakeout.
Breakout Or Fakeout in Crude Oil Price Daily Chart
The oil is trading near to its support level in a rising trend.Oil price today in a forex market is 48.40 which is slightly lower from the support level.The current level is the watching area to predict next movement either upside or downside.Oil may give clear picture after today closing.As per the technical rule, the trend is bullish, and we will look for bullish entry after the bounce confirmation around 49.70 area towards 52.23 minimum and 56.50 maximum which is the next resistance level.
Alternately: If oil close below 47.80 in the daily chart, this will be the confirmation of break and could take oil prices to the next lower level minimum 47.20 and maximum 44.00 in next couple of days.
Please have a look at crude oil technical chart below, I have mentioned the logical levels of confirmation and watching area.
Crude Oil Price Chart ( Daily )
Note: Please wait for the confirmation before entering into an oil trade.Break above 49.70 will confirm the bullish bounce and daily closing below 47.80 will confirm the bearish signal. Both evidence points are already mentioned in the chart above.
Oil Support & Resistance Levels
Resistance 1: 48.83
Resistance 2: 49.70
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Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com