utsavroy

CRUDE OIL : STILL SOME MOVES LEFT

Long
FX:USOIL   CFDs on Crude Oil (WTI)
Crude oil is forming a descending triangle on the 4 hour time frame in an already established downtrend. Even though a descending triangle is a continuation pattern in general case but I believe that this descending triangle should be traded carefully as it might mark a trend reversal. My ideology is if crude breaks below 21.48, it will break out of the triangle and might go lower but it will find a very strong support in 12-18 region as this region marks the price of crude oil between 90's to 2001. Hence, I believe that crude might see a trend reversal from a down trend. My entry would be the closing of crude oil above 26.26 level as that would confirm the break of the descending triangle on the upward side and a completion of a downtrend. Fundamentally too, once the effect of coronavirus reduces and major industries such as airlines start to pick up, the demand will increase leading to a major increase in the price of crude oil so better trade on the buy side.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.