As posted earlier i think Crude is on a crucial junction here. A closeup look at the structure revealed a nice short set up. Price action at the Orange Excursion line we zoomed on friday will tell if it is just a scalp or something bigger. If we rebreak that line, the short could be kept open for a bigger downside move. If we bounce back up i will be looking for...
Overview:
The Crude oil market had a fairly negative day on Monday, as market continue to worry about all things European Union and United Kingdom related. The primary trend of Crude oil is bearish on charts. On its 4 hourly chart, market is trading below 100 days moving average. It is having important resistance at the level of $48.12 and support level at the...
Pivot: 47.75
Most Likely Scenario: long positions above 47.75 with targets @ 49.30 & 50.20 in extension.
Alternative scenario: below 47.75 look for further downside with 47.30 & 46.80 as targets.
Comment: the RSI advocates for further advance.
Pivot: 47.50
Most Likely Scenario: short positions below 47.50 with targets @ 45.55 & 44.50 in extension.
Alternative scenario: above 47.50 look for further upside with 48.50 & 49.30 as targets.
Comment: even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
Pivot: 48.72
Most Likely Scenario: short positions below 48.72 with targets @ 46.50 & 45.55 in extension.
Alternative scenario: above 48.72 look for further upside with 49.30 & 50.00 as targets.
Comment: the RSI is mixed with a bearish bias.
Pivot: 48.60
Most Likely Scenario: short positions below 48.60 with targets @ 47.50 & 47.10 in extension.
Alternative scenario: above 48.60 look for further upside with 49.30 & 50.00 as targets.
Comment: the RSI lacks upward momentum.
Pivot: 49.30
Most Likely Scenario: short positions below 49.30 with targets @ 48.00 & 47.50 in extension.
Alternative scenario: above 49.30 look for further upside with 50.00 & 50.35 as targets.
Comment: the RSI lacks upward momentum.
Price action likely to consolidate around weekly resistance at 39.63 before advancing to the next weekly resistance at 49.08 before pushing upwards to 50.68 where the physiologically important $50 oil mark will likely cause the liquidation of long positions and a sharp correction downwards.
Buy entry point at any failure to break before between 42.32 - 41.42
