Crude Oil Analysis near resistance area
As the market continues to react to various economic indicators and geopolitical developments, Crude Oil prices are currently at a pivotal point.
Below are two potential scenarios based on the current market conditions.
Current Analysis: Crude Oil is currently facing a critical resistance zone between $71.5 and $72.8. Based on the price action and market sentiment, I foresee two potential scenarios:
Scenario 1: Bearish Reversal
Resistance Strength: The resistance at $71.5 and $72.8 is strong.
Expected Movement: If the price fails to break through this resistance, I anticipate a rebound, leading to a decline towards the $68-$69 area.
Action Plan:
Entry Signal: Monitor for bearish price action signals, such as a Shooting Star or a Bearish Engulfing Pattern, indicating a potential reversal.
Entry Point: Enter a short position upon confirmation of the bearish signal.
Target: Set a target at the $68-$69 range.
Stop Loss: Place a stop loss at $72.8 to manage risk effectively.
Scenario 2: Bullish Breakout
Resistance Strength: The resistance at $71.5 and $72.8 is weak.
Expected Movement: If the price successfully breaks above this resistance, I expect it to rally towards the $77-$77.5 area.
Action Plan:
Entry Signal: Wait for a confirmed close above $72.8, ideally accompanied by a strong bullish candle (preferably a long green candle) to validate the breakout.
Entry Point: Enter a long position upon confirmation of the breakout.
Target: Set a target in the $78-$79 range.
Stop Loss: Place a stop loss at $71.5 to protect against potential reversals.
Summary
The key levels to watch are $71.5 and $72.8 for potential reversals or breakouts. I will wait for confirmation through price action signals befare takeing a decision.
Below are two potential scenarios based on the current market conditions.
Current Analysis: Crude Oil is currently facing a critical resistance zone between $71.5 and $72.8. Based on the price action and market sentiment, I foresee two potential scenarios:
Scenario 1: Bearish Reversal
Resistance Strength: The resistance at $71.5 and $72.8 is strong.
Expected Movement: If the price fails to break through this resistance, I anticipate a rebound, leading to a decline towards the $68-$69 area.
Action Plan:
Entry Signal: Monitor for bearish price action signals, such as a Shooting Star or a Bearish Engulfing Pattern, indicating a potential reversal.
Entry Point: Enter a short position upon confirmation of the bearish signal.
Target: Set a target at the $68-$69 range.
Stop Loss: Place a stop loss at $72.8 to manage risk effectively.
Scenario 2: Bullish Breakout
Resistance Strength: The resistance at $71.5 and $72.8 is weak.
Expected Movement: If the price successfully breaks above this resistance, I expect it to rally towards the $77-$77.5 area.
Action Plan:
Entry Signal: Wait for a confirmed close above $72.8, ideally accompanied by a strong bullish candle (preferably a long green candle) to validate the breakout.
Entry Point: Enter a long position upon confirmation of the breakout.
Target: Set a target in the $78-$79 range.
Stop Loss: Place a stop loss at $71.5 to protect against potential reversals.
Summary
The key levels to watch are $71.5 and $72.8 for potential reversals or breakouts. I will wait for confirmation through price action signals befare takeing a decision.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.