Technically, CL1! ( crude oil ) currently showing upside potential as bears push southwards at 41.50 or 41.20, bulls are highly active at these levels but seems to be panicky at 42.22 levels, that is where we see the strong resistance.
This was probably due to the Saudi Arabian oil minister downgrades the freezing topic of oil production.
Earlier today, the commodity has tested supports at 40 levels to jump upto 42.22 levels (almost 5.55% increase in a day so far).
While, buying momentum has been intensifying as the daily & indicators are converging to these price spikes and current prices jump above 7 & 21DMA.
Will Dragonfly push even higher for trend reversal?
On monthly plotting, so far it's been luring effect that the bulls may tend to jump into conclusion, however, whether it is a trend reversal, that's million dollar question. This is yet to be confirmed by lagging indicators although strong bounces from last three months after the formation of "Dragongfly Doji".
still remains in the trajectory, while current price on monthly still well below 21EMA despite the attempts of bull swings.
Our earlier medium targets have been very well achieved, refer below link for more readings on our previous post:
Targets achieved - T1 at 38.38 levels and T2 at 40.
However, Wait & watch approach is exclusively for skeptic bears or for traders who wants to play it safe, if you're an aggressive then our bravehearted call is bullish bias.