A strong Bear Pressure on oil - Back to previous support levels?
Oil has been bullish since the end of the year 2018, and with an average volume increasing from 1.5M contracts (1000 barrels) to 2.5M, its price gained 53%.
This week more volume was noticed, a total of 5.1M contract, driving its value to 66.00$. Nonetheless, within the last two days, there was a strong bear pressure on oil, plunging it to the consolidation area surrounding the institutional level 63.00$.
Likely Scenario : Bearish (Sell) - Oil has more chances to break the 62.00$ support and reach back 60.00$ or the consolidation area surrounding level 59.00.
Setup :
Wait for a downward breakout @62.00$ to sell
Stop Loss @62.80$
Take Profit @60.00$
Unlikely Scenario - Oil has less chances to be stopped @62.00$ and jump to the consolidation area surrounding level 64.00$.
This week more volume was noticed, a total of 5.1M contract, driving its value to 66.00$. Nonetheless, within the last two days, there was a strong bear pressure on oil, plunging it to the consolidation area surrounding the institutional level 63.00$.
Likely Scenario : Bearish (Sell) - Oil has more chances to break the 62.00$ support and reach back 60.00$ or the consolidation area surrounding level 59.00.
Setup :
Wait for a downward breakout @62.00$ to sell
Stop Loss @62.80$
Take Profit @60.00$
Unlikely Scenario - Oil has less chances to be stopped @62.00$ and jump to the consolidation area surrounding level 64.00$.