Oil 2023 Bearish Bets and Bullish Hopes
After reaching its recent height of $95 a barrel later in September. Crude oil has been on a downtrend since and is currently just below $80 a barrel. There are a lot of factors weighing on Crude oil such as weak Global demand, inflation, and tensions in the Middle East. My Self as well as other institutional traders have not changed our price target for Crude oil to reach $100 by early next year. Today we will look for levels of support for crude oil since it is currently in a downtrend.
On the Daily Chart, we see a head and shoulder pattern that started around $68.We can see that the market clearly broke the neckline and is showing more momentum to the downside. We get a target of $70 to the downside is the head and should pattern plays out ideally. The distance from the head of the head and shoulder pattern to the neckline is the same distance from the break of the neckline to the last Take profit target when trading the head and shoulder pattern, this is market by PRZ#3(potential reversal zone).
PRZ #2 @ $74
From the height of $95, the market made a lower high of $90 a barrel and failed to create a higher high. This was an indication that the bullish trend has now turned bearish. The Market got rejected at the 6.18 @90 and then headed down. By drawing the AB|CD pattern we see that area around $74 we see that as a good price target for the down movement. We also see the completion of a 5-point retracement pattern at this point. In Addition, the 6.18 extension is just below $73.
PRZ #1 @ $77
This is a 6.18 retracement for the $95 highs from the $66 lows. This happens to be a good support area with multiple rejections. Even if there might not be as many technical factors as the other price zones, we need to mark it out so that we can see early price rejection.
I have outlined important price zones I will be monitoring as the falling oil prices continue. It is also important to understand that due to the War in the Middle East, oil prices can be affected since oil-producing countries are involved. There is a decrease in supply and we are seeing close to Pandemic lows, in terms of oil production. OPEC has maintained oil cuts for the rest of the year so there is clearly a demand problem.
On the Daily Chart, we see a head and shoulder pattern that started around $68.We can see that the market clearly broke the neckline and is showing more momentum to the downside. We get a target of $70 to the downside is the head and should pattern plays out ideally. The distance from the head of the head and shoulder pattern to the neckline is the same distance from the break of the neckline to the last Take profit target when trading the head and shoulder pattern, this is market by PRZ#3(potential reversal zone).
PRZ #2 @ $74
From the height of $95, the market made a lower high of $90 a barrel and failed to create a higher high. This was an indication that the bullish trend has now turned bearish. The Market got rejected at the 6.18 @90 and then headed down. By drawing the AB|CD pattern we see that area around $74 we see that as a good price target for the down movement. We also see the completion of a 5-point retracement pattern at this point. In Addition, the 6.18 extension is just below $73.
PRZ #1 @ $77
This is a 6.18 retracement for the $95 highs from the $66 lows. This happens to be a good support area with multiple rejections. Even if there might not be as many technical factors as the other price zones, we need to mark it out so that we can see early price rejection.
I have outlined important price zones I will be monitoring as the falling oil prices continue. It is also important to understand that due to the War in the Middle East, oil prices can be affected since oil-producing countries are involved. There is a decrease in supply and we are seeing close to Pandemic lows, in terms of oil production. OPEC has maintained oil cuts for the rest of the year so there is clearly a demand problem.