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CRUDEOIL got rejected from the $41 resistance level and has fallen close to 10% from there within a comparatively small span of time.
Global markets like US30 / DOW JONES, SPY, SPX have also seen a good drop during the same time period and that could be the reason for the drop in CRUDEOIL prices.
Since we had a steep rejection from the $41 level, i would be more inclined towards expecting a fade off of the next upside rally.
Have the $41 level as a stop loss in case you try to short because if CRUDEOIL breaks above that level we can expect a teleport to higher levels (as a zone where we had seen good rejection earlier would now be broken).
If you look at the daily chart for CRUDEOIL, you will realise that it CRUDEOIL hadn't had a healthy pull back yet (see image below) and thus this drop can extend further downwards before we see a up-side rally.
The RSI, has also seen a steep drop in crude oil on the 4H chart which is a bearish sign.
Anyways, CRUDEOIL is correlated with GLOBAL MARKETS named above and trade along with them.
Please note: These are my views and not trading advice. Please consult your financial adviser before taking any trading decision.
DAILY RSI
CRUDEOIL - 58 ( bullish / neutral zone)
The market can stay irrational longer than you can stay solvent - John Maynard Keynes
Before you start reading kindly hit that like button. It motivates me to keep doing such work for free.
Thanks
CRUDEOIL got rejected from the $41 resistance level and has fallen close to 10% from there within a comparatively small span of time.
Global markets like US30 / DOW JONES, SPY, SPX have also seen a good drop during the same time period and that could be the reason for the drop in CRUDEOIL prices.
Since we had a steep rejection from the $41 level, i would be more inclined towards expecting a fade off of the next upside rally.
Have the $41 level as a stop loss in case you try to short because if CRUDEOIL breaks above that level we can expect a teleport to higher levels (as a zone where we had seen good rejection earlier would now be broken).
If you look at the daily chart for CRUDEOIL, you will realise that it CRUDEOIL hadn't had a healthy pull back yet (see image below) and thus this drop can extend further downwards before we see a up-side rally.
The RSI, has also seen a steep drop in crude oil on the 4H chart which is a bearish sign.
Anyways, CRUDEOIL is correlated with GLOBAL MARKETS named above and trade along with them.
Please note: These are my views and not trading advice. Please consult your financial adviser before taking any trading decision.
DAILY RSI
CRUDEOIL - 58 ( bullish / neutral zone)
The market can stay irrational longer than you can stay solvent - John Maynard Keynes