I noticed this falling trendline on 4H and daily chart and it looks like currently, it provides the strongest resistance for the crude price.
from the 20th of February each touch of the trendline led to a strong wave to the downside and this time we may see the same thing.
next week pay attention to 19.0 - 21.0 area and look for a signal to short! oil market is still weak so it is still reasonable to be short biased so I will try to sell from the underlined structure.
moreover, in case of a bullish breakout of this trendline , we can talk about a change in sentiment on oil market, and shift to a bullish bias!
next week will be interesting I suppose, so let's see how it unfolds!
Good Morning Vasily, which Oil contract you referring too - Jun?
Thank you in advance.
chrisjfx
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Clean and simple, thanks for the analysis. I do believe we will see one more drop at the very least. There is a lot of downwards pressure notwithstanding cut productions. Stocks have the privilege to recover weeks ahead, but commodities don't have that privilege generally speaking.