Crude Oil Technical Analysis
Crude Oil breaches the first resistance – Analysis – 07/04/2016
Crude oil price continued its positive trading clearly to breach 37.70 level and closed the daily close above it, where the trading settles above the EMA50 to get positive motive that might assist to push the price to achieve more gains.
On the other hand, the price remains below the critical resistance barrier that we mentioned in our last report at 39.00, besides the clear oversold signals that come from stochastic,
Therefore, the contradiction between the technical signals make us prefer staying aside in order to monitor the price behavior according to the critical levels that represented by 37.70 support and 39.00 resistance, waiting for breaching one of them to detect the next trend clearly.
Note that breaking 37.70 level will reactivate the negative effect of the head and shoulders pattern that appears on the above chart, then heading towards 35.13 initially, while breaching 39.00 level represents positive motive that will lead the price to stop the negative pressure that controlled the last trading then heading towards 44.00 as a next main station.
Expected trading range for today is between 35.50 support and 40.00 resistance.
Expected trend for today: Depends on the above mentioned levels