Will the Crude Oil break the support level and plummet?
The price of crude is going down fast (as in 2008/2009 and 2001 etc.) while the value of USD (against the other currencies) is going up. The US Dollar stays bold as investors address this currency to save their assets and as the FED injected billions of dollars into the market to help US banks with liquidity and to stimulate the US economy.
Fig.1 - Scenario A: The price bounces back from the support level as usually does at the Double Bottom pattern and completes the formation of "W character".
Fig.2 - Scenario B: The price breaks the support level as it does when more traders are selling than buying and cancels the DB pattern by breakout. If this happens the price will plummet very fast towards the next resistance level.
With the current sentiment of the markets (strong bear market almost everywhere as the world is entering the 2020 recession), I concider the B scenario more likely to happen.
What is your opinion? Any comments welcome!
Fig.1 - Scenario A: The price bounces back from the support level as usually does at the Double Bottom pattern and completes the formation of "W character".
Fig.2 - Scenario B: The price breaks the support level as it does when more traders are selling than buying and cancels the DB pattern by breakout. If this happens the price will plummet very fast towards the next resistance level.
With the current sentiment of the markets (strong bear market almost everywhere as the world is entering the 2020 recession), I concider the B scenario more likely to happen.
What is your opinion? Any comments welcome!