Written on 11/05/2020 by Theunis Kruger, FX Trainer at FXTM
The price of Crude Oil, on the D1 time-frame, was in a lengthy downward spiral until April 21 when a lower bottom was recorded at 9.87. This extreme all-time low was too good for the bulls to ignore and they started entering the market with long positions.
After the bottom at 9.87, a possible price reversal or early stage of a new trend was confirmed when the market broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator entered into positive terrain by breaking the zero baseline.
During the upward move a Morning Star Candle pattern formed that further confirmed the change to a bullish sentiment in the Crude Oil Market.
A possible critical resistance level formed when a top was recorded on 7 May at 27.48. The bears are currently trying to push the price lower.
If the Crude Oil market breaks through the critical resistance level at 27.48, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the top of the resistance level at 27.48 and dragging it to a possible support level near the 15 Simple Moving Average at 20.45, the following targets might be considered. The first target could be estimated at 31.82 (161 %). The second price target might be considered at 38.85 (261.8%) and the third and final target may be projected at 50.23 (423.6%).
If the 20.45 support level is broken, the anticipated price targets are annulled.
As long as the price continues making higher tops and bottoms, thus confirming an uptrend is in place and demand is overcoming supply, the outlook for the Crude Oil market on the Daily time-frame will remain bullish.
For more information, please visit: FXTM
Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Scammer Alert – This is One Broker to Definitely Avoid
- Could Earnings Season Surprises be Just Around the Corner?
- Keep Trading the Technicals to Take Advantage of a Quiet News Week
- Trading Strategies to Suit The Week of 18th October
- Will Commodities Offer Protection From Inflation?
- Earnings Season to The Rescue – What to Watch Out for This Week
Scammer Alert – This is One Broker to Definitely Avoid
Could Earnings Season Surprises be Just Around the Corner?
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||67% of CFD traders lose Founded: 2006||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox