The Crude Oil Market, on the D1 time-frame, was in a down trend until the 12th of June when a lower bottom was recorded at 60.285. Buyers found the price attractive and demand overcame supply.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 60.472 and 60.285. This could have alerted technical traders to a possible reversal in the making.
After the bottom at 60.285 the market broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator pierced the zero baseline into positive territory. This confirmed a possibility technical price reversal.
A likely critical resistance level formed when a higher top was recorded on the 1st of July at 67.612. Sellers tried to push the price lower but demand overwhelmed supply and a support level formed on 3rd of July at 62.726.
If Crude Oil breaks through the critical resistance level at 67.612, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 67.612 and dragging it to the support level at 62.726, the following targets may be calculated. The first target can be anticipated at 70.631 (161 %). The second price target can be predicted at 75.517 (261.8%) and the third and final target may be expected at 83.422 (423.6%).
If the support level at 62.726 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 D1 time-frame will remain bullish.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 60.472 and 60.285. This could have alerted technical traders to a possible reversal in the making.
After the bottom at 60.285 the market broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator pierced the zero baseline into positive territory. This confirmed a possibility technical price reversal.
A likely critical resistance level formed when a higher top was recorded on the 1st of July at 67.612. Sellers tried to push the price lower but demand overwhelmed supply and a support level formed on 3rd of July at 62.726.
If Crude Oil breaks through the critical resistance level at 67.612, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 67.612 and dragging it to the support level at 62.726, the following targets may be calculated. The first target can be anticipated at 70.631 (161 %). The second price target can be predicted at 75.517 (261.8%) and the third and final target may be expected at 83.422 (423.6%).
If the support level at 62.726 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 D1 time-frame will remain bullish.