Crude Oil Value Forecast: Struggles at 50-Day MA, Downtrend Nonetheless Intact…

Potential for Decrease Swing Excessive

As we speak’s excessive has the potential to retain the downtrend value construction with a decrease swing excessive. A drop under at the moment’s low of $72.09 will set up a brand new decrease swing excessive and retain the integrity of the downtrend that started from the $80.76 swing excessive. The downtrend stays in place until there’s a sustained rally above the February 11 interim swing excessive at $72.64.

Nevertheless, if at the moment’s excessive establishes a brand new decrease swing excessive and it’s subsequently damaged to the upside, that would present an early sign for a bullish change in development. Nonetheless, a rally above at the moment’s excessive previous to establishing a brand new decrease swing excessive places crude oil able to problem the $72.64 swing excessive. Subsequently, if a $72.64 bull breakout triggers, the 200-Day MA at $74.49 turns into the following increased value goal.

Subsequent Decrease Goal at $70.52 if Decline Continues 

Alternatively, the bearish correction continues to lower cost targets, beginning with the 78.6% retracement at $70.03. There’s additionally a variety of prior consolidation that represents potential help under the present retracement low at $70.52. Reaching the 78.6% retracement degree may sign the completion of the decline. Discover that crude oil has been buying and selling close to development lows lately and it has been exhibiting indicators of consolidation. In different phrases, bearish momentum has diminished.

Decrease Degree at $68.82

That might be the tip of it but when not the $68.82 interim swing low marks a lower cost goal. A drop under Wednesday’s low of $72.07 reveals weak spot that would result in decrease costs if the breakdown is sustained. It could be simpler to acknowledge on the weekly chart (not proven).

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