Crude is testing critical support zone
Oil is testing the bottom of a weekly support zone.
40-44$ is the support zone I mentioned in my previous analyses (see linked idea)
August's spike and the strong close above 40$, created a False Break that is being tested now. If the price will close below 40$ by the end of this month, it will create a bearish signal that may lead Crude towards the X zone - near 30$.
As you can see in the upper chart, the price is now testing the neck line of a Head and Shoulders Pattern. A close below 38-37$ will probably expedite Crude's decline towards 30$ as this Weekly Head and Shoulders will be triggered.
If Crude will remain above 40$ (or even better, create a bullish Pinbar), it could mean near term rally in oil prices.. at least towards the top of the support zone - 44$.
Both the Fast and the 50 SMA lines are now approaching the support zone and will add more selling pressure on Oil.
Although things look bearish, as long as Oil above 39-40$, I continue to focus on bulls side..
Tomer, The MarketZone
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40-44$ is the support zone I mentioned in my previous analyses (see linked idea)
August's spike and the strong close above 40$, created a False Break that is being tested now. If the price will close below 40$ by the end of this month, it will create a bearish signal that may lead Crude towards the X zone - near 30$.
As you can see in the upper chart, the price is now testing the neck line of a Head and Shoulders Pattern. A close below 38-37$ will probably expedite Crude's decline towards 30$ as this Weekly Head and Shoulders will be triggered.
If Crude will remain above 40$ (or even better, create a bullish Pinbar), it could mean near term rally in oil prices.. at least towards the top of the support zone - 44$.
Both the Fast and the 50 SMA lines are now approaching the support zone and will add more selling pressure on Oil.
Although things look bearish, as long as Oil above 39-40$, I continue to focus on bulls side..
Tomer, The MarketZone
Follow me on TradingView
Subscribe to my newsletters - goo.gl/R3gPVE
Follow my blog - goo.gl/78KZsl
Subscribe to my Youtube channel - goo.gl/q8dbyT
Comment:
Nice spike from 40$ today thanks to Saudi Arabia. 40$ holds as support
