The Crude oil market, on the D1 time frame, was in a short downtrend until the 2nd of November when a lower bottom was reached at 33.78. Bulls found the price attractive and demand began overcoming supply.
After the lower bottom at 33.78, the price crossed upwards through both the 15 and 34 Simple Moving Averages and the Momentum Oscillator crossed the zero baseline into bullish territory. This was a warning to technical traders that a possible trend change might be in progress.
A higher top and critical resistance level was formed on the 11th of November at 43.24 when bears came to the immediate defence, trying to take the price lower again. They failed and on the 13th of November a higher bottom was formed at 40.30 as bulls started re-capturing the market again.
On the 23rd of November the Crude oil market breached the critical resistance level at 43.24 and three possible price targets can be calculated from there. Applying the Fibonacci tool to the top of the resistance level at 43.24 and dragging it to the previous higher bottom at 40.30, the following targets can be considered. The first target may be projected at 45.06 (161 %). The second price target might be likely at 48.00 (261.8%) and the third and final target can be expected at 52.75 (423.6%) if the uptrend continues making higher top and bottoms.
If the higher bottom at 40.30 is breached, the bullish scenario above is invalidated and traders might consider protecting their accounts.
As long as positive sentiment remains and demand overwhelms supply, the outlook for the Crude oil market on the Daily time frame will remain bullish.
For more information, please visit: FXTM
- Crypto Rollercoasters, Meme-stock Explosions and Nasdaq Highs – There’s Something for Everybody
- Is This a Dip to Buy or the Start of a Market Correction?
- EURJPY – Bears might be coming out of hiding
- Risk Assessment – Fed’s Interest Rate News Changes the Landscape
- Sell in May Didn’t Work – Is it Now Time to Buy in June?
- GameStop Revolution Reveals Which Brokers Really Support Client Interests
Crypto Rollercoasters, Meme-stock Explosions and Nasdaq Highs – There’s Something for Everybody
Is This a Dip to Buy or the Start of a Market Correction?
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: 2015||Global Forex & CFD Broker||
LOWEST FEES Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#5||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 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