The long-term trend in Oil is bearish.
Due to current short-term positive momentum, I expect the price to consolidate before breaking below various support levels.
Resistance is provided bt the 150 and 250 day moving averages, while support is provided by:
- previous inflection point at around $35 (weak)
- 0.5 Fibonacci lvl (solid)
- Previous low at roughly $26-$27 (strong)
Overall I am bearish on oil until prices break above the moving average levels and the moving averages begin to serve as support.
Due to current short-term positive momentum, I expect the price to consolidate before breaking below various support levels.
Resistance is provided bt the 150 and 250 day moving averages, while support is provided by:
- previous inflection point at around $35 (weak)
- 0.5 Fibonacci lvl (solid)
- Previous low at roughly $26-$27 (strong)
Overall I am bearish on oil until prices break above the moving average levels and the moving averages begin to serve as support.
There remains heavy resistance at the $60-70 range. Based on momentum it is possible these levels can be tested.
Still, it has reached the top of the channel in a general bearish downtrend. We shall see if this presents a breakout or a sharp move on the downside