Technical outlook for oil
- Crude oil decreases towards high accession support
- At least relief can be expected
Technical outlook for crude oil: fast approaching support
Since reaching long-term resistance near the 76 line crude oil has been nothing but weak. It has an area of focus that is far from below. The trend of massive low levels as a result of the panic in Saudi Arabia coincides with a 200-day moving average.
The two collide around the 60th boundary and can at least provide a floor for a bounce. The trend from the low has obviously risen and maybe a low level may be introduced, leading the other leg higher. But even if this is not the case, the right pricing can offer traders a chance to bounce.
What I expect in this regard is the volatility around the subsidy, which indicates that sales are running out. A sudden return date may indicate this. The low level created during such an event is viewed as a line in the sand.
Longer up-and-coming players may see this as a good place for risk / reward to join the trend at a higher level, while short-term traders, as suggested above, could play an oversold rebound. A break from trend support.
Crude oil (CL) daily schedule
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– Written by market analyst Paul Robinson
You can follow Paul on Twitter at @PaulRobinsonFX