On the 14th of May a scenario was discussed where the Crude Oil market might be gaining downward momentum. This was because, following a recent uptrend, the price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming that a possible technical reversal might be in progress.
The price subsequently retraced and touched the possible resistance level at 73.390 but was never convincingly broken thus the scenario stayed valid. The bears then took control of the market and on the 23rd of May the critical support level at 69.251 was broken with a short position engaged. Buyers tried to push the market higher but supply overwhelmed demand and the first target was reached on the 30th of May.
Selling pressure remained strong with powerful bearish candles resulting and the second target was reached on the 3rd of June.
It remains to be seen if the third and last target will be reached and traders must wait patiently until either the target is reached or the trend reverses with the resulting higher bottoms and tops. Any remaining profit can then be taken and possible new scenarios considered.
For now, as long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for Crude Oil market on the D1 time-frame will remain bearish.
The price subsequently retraced and touched the possible resistance level at 73.390 but was never convincingly broken thus the scenario stayed valid. The bears then took control of the market and on the 23rd of May the critical support level at 69.251 was broken with a short position engaged. Buyers tried to push the market higher but supply overwhelmed demand and the first target was reached on the 30th of May.
Selling pressure remained strong with powerful bearish candles resulting and the second target was reached on the 3rd of June.
It remains to be seen if the third and last target will be reached and traders must wait patiently until either the target is reached or the trend reverses with the resulting higher bottoms and tops. Any remaining profit can then be taken and possible new scenarios considered.
For now, as long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for Crude Oil market on the D1 time-frame will remain bearish.