Looking at the daily chart, Crude Oil appears to be trapped within a range once again. This pattern has persisted for several months, with Oil experiencing downward extensions followed by periods of consolidation as OPEC+ intervenes through production cuts to mitigate further declines. The overall bias for Crude Oil remains bearish.
Notably, the $73 resistance level has been repeatedly rejected, indicating selling pressure in the market. As a result, it is reasonable
to anticipate that the price may revisit the $64.29 support level. A breach below this support level would likely pave the way for a more substantial downward move, potentially targeting the $57 level.
It is crucial to bear in mind that market conditions are subject to change, and the analysis provided is based on current observations. Traders should exercise caution and consider additional factors when making trading decisions in the dynamic Crude Oil market.
.Examining the 4-hour chart, we can observe a recent rally in the price of Crude Oil towards the $73 resistance level. This upward movement was fueled by expectations of additional economic stimulus measures from China, prompting buyers to bid into the resistance in hopes of a breakout. However, the rally proved short-lived as Crude Oil reversed at the resistance level.
Subsequently, the price broke below a significant trendline, triggering intensified selling pressure as momentum sellers entered the market. This led to a decline in price, ultimately reaching the $67 support level. As a result, it appears that Crude Oil has once again entered into a range-bound trading pattern, with the $67 to $73 levels defining the boundaries of this range.
Chris
Head Trader & Coach
www.thetradingmentors.com
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