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 - http://goo.gl/R3gPVE
Follow my blog - http://goo.gl/78KZsl
Subscribe to my Youtube channel - https://goo.gl/q8dbyT
Comment:
Nice spike from 40$ today thanks to Saudi Arabia. 40$ holds as support
I guess 43$ first.
Could reach 40$ again, its still part of the scenario
Could reach 40$ again, its still part of the scenario
Reply
Hey Kori, didn't understand your question. You can send me an email themarketzoneforex@gmail.com if you wish.
Regarding next week, 40$ will continue to be tested. As mentioned above, I wouldn't want to see Crude dropping below 39.5$.. it'll be considered a bearish signal
Regarding next week, 40$ will continue to be tested. As mentioned above, I wouldn't want to see Crude dropping below 39.5$.. it'll be considered a bearish signal
Reply