Crude Oil Under Microscope
We can see that oil has taken a sideway wave after the huge drop recently, where crude oil prices dropped after touching the resistance of the main upside channel as shown clearly below in the chart.
The sideway trading continues to fluctuate around the 61.8% Fibonacci level for the last upside wave shown in the chart.
Moreover, we can also see that a downside technical model was completed and we are waiting for the price to breach the neckline for this model at 96.70, the downside model is shown in the secondary chart.
These factors in addition to the negative pressure coming from the SMA 50 is making us believe that crude oil is targeting the support of the main upside channel located at 88.00, which is the major target for aforementioned upside channel.
Also, we should note that the full target for the downside technical mode is located at 80.00, and if crude oil drops to that level, it will exit the general upside trend, and the trend will reverse to the downside over the short term.
For now, we are going to focus on the intraday and short term trends, where we will closely watch crude oil prices around the main support level at 88.00.
On the other hand, we should note that breaching the 104.45 level will push crude oil prices to the upside, and the downside technical model in that case will be invalid.
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