The Crude Oil market, on the H4 time-frame, was in a downward path until the 5th of June when a lower bottom was recorded at 60.472. The bulls found the price attractive and demand overwhelmed supply.
After the bottom at 60.472 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator pierced the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed a possibility technical price reversal. An Engulfing Candle pattern strengthened the possible reversal even more.
A possible critical resistance level formed when a higher top was recorded on the 9th of June near 64.739. Sellers are currently trying to pushed the price lower.
If Crude Oil breaks through the critical resistance level at 64.739, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 64.739 and dragging it to a likely support level near the 34 Simple Moving Average at 62.396, the following targets may be calculated. The first target can be anticipated at 66.187 (161 %). The second price target can be predicted at 68.530 (261.8%) and the third and final target may be expected at 72.321 (423.6%).
If the bottom at 62.396 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Crude Oil market on the H4 time-frame will remain bullish.
After the bottom at 60.472 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator pierced the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed a possibility technical price reversal. An Engulfing Candle pattern strengthened the possible reversal even more.
A possible critical resistance level formed when a higher top was recorded on the 9th of June near 64.739. Sellers are currently trying to pushed the price lower.
If Crude Oil breaks through the critical resistance level at 64.739, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 64.739 and dragging it to a likely support level near the 34 Simple Moving Average at 62.396, the following targets may be calculated. The first target can be anticipated at 66.187 (161 %). The second price target can be predicted at 68.530 (261.8%) and the third and final target may be expected at 72.321 (423.6%).
If the bottom at 62.396 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Crude Oil market on the H4 time-frame will remain bullish.