Hello Everyone,
As you know, Crude Oil took a hit during the early stages of pandemic and became relatively cheap for a while. However, with the beginning of 2021, energy crisis occured around the globe and the whole climate crisis made things a lot worse for both consumers and producers. And still, global energy prices continues to go up. Anyway, let's take a look of technical view of things and the price action of crude oil on 2W charts.
Red level had been a great resistance level for a long time and sellers manage to protect this area while pushing the price down, until there are no buyers left, which led to a liquidation cascade back in 2014. And the buyers only managed to push the price up to November 14 levels(which was also a supply level in Weekly tf) and led to another liq cascade thanks to Covid19.
Now, buyers again pushed the price to the exact same level and met with selling pressure and deviated around 75-76 price level. If the buyers manage to hold 76.17(for couple of days) the price will most likely visit the gray area first and will be targeting the red line which was the original sell-off point in the first place. However, if the prices loses the green area and continues to close below, that would be a bad sign and the latest attempt will be left as a deviation and the price will likely search for a liquidity around 57.50 lows and then will continue on it's way to other support levels and the blue demand area as well.
Summary:
In order to continue it's bull-trend, the price should close above 76 and hold above this level.
If the price loses the green box that would be bearish. Area between blue box and green box will turn into a small range at first and that won't be not good sign for both bulls and bears as the price will go flat for a while. Which may turn into a suitable area for range traders.
As you know, Crude Oil took a hit during the early stages of pandemic and became relatively cheap for a while. However, with the beginning of 2021, energy crisis occured around the globe and the whole climate crisis made things a lot worse for both consumers and producers. And still, global energy prices continues to go up. Anyway, let's take a look of technical view of things and the price action of crude oil on 2W charts.
Red level had been a great resistance level for a long time and sellers manage to protect this area while pushing the price down, until there are no buyers left, which led to a liquidation cascade back in 2014. And the buyers only managed to push the price up to November 14 levels(which was also a supply level in Weekly tf) and led to another liq cascade thanks to Covid19.
Now, buyers again pushed the price to the exact same level and met with selling pressure and deviated around 75-76 price level. If the buyers manage to hold 76.17(for couple of days) the price will most likely visit the gray area first and will be targeting the red line which was the original sell-off point in the first place. However, if the prices loses the green area and continues to close below, that would be a bad sign and the latest attempt will be left as a deviation and the price will likely search for a liquidity around 57.50 lows and then will continue on it's way to other support levels and the blue demand area as well.
Summary:
In order to continue it's bull-trend, the price should close above 76 and hold above this level.
If the price loses the green box that would be bearish. Area between blue box and green box will turn into a small range at first and that won't be not good sign for both bulls and bears as the price will go flat for a while. Which may turn into a suitable area for range traders.