The price levels around 38 provided so far a strong support, as can be affirmed by the three white soldiers candlestick formation of the reaction. The major test lies ahead at 52.16, which represents 61.8% Fib. retracement of the last declining wave and in addition is situated within the Ichimoku cloud. Decisive break of this level could herald a major trend reversal (from bearish to bullish), else the "ideally" proportioned AB-CD pattern could dominate by driving prices towards a possible low of 29.
Comments
ElPatron.Y
⋅
Daily test the previous high and making a shooting star!! not so bullish at all...
cfetrader
⋅
Hi LK,
As far as crude oil is concerned (currently in the final z-wave of a declining pattern w-x-y-x-z since 2013; part of c-minor belonging to the C-major of an A-B-C formation starting 2008), price reacts mainly to two variables: (1) Geopolitics & (2) Supply-Demand Curve. Both are equally important and interlinked. Although I cover two trend options in my aforementioned technical analysis, kindly do not dismiss that easily the bullish scenario (corrections are a natural part of any rise), since traces of supply weakness are beginning to emerge, whilst demand is steadily on the rise. Within the next 5 years I foresee a great advance in crude oil prices (well above 140; 200 would not surprise me at all).
cfetrader
⋅
The relevant monthly chart is included herein
.
cfetrader
⋅
A more detailed version of the daily crude oil chart is presented below.