US Crude Oil mixed results as we continue to trade with the bear
The rally was sold and the dip was bought resulting in little net change for the day. Trading in US Crude Oil continues to be mixed and volatile while we trade within the bearish expanding wedge formation. Bespoke resistance is located at $78.75 and $78.78. When these barriers collide, they offer more weight. Trendline resistance is located at $81.60. Trend line support is located at $72.55. The formation has a measured move target of $67.74.
Although tension in the Middle East continues, with the Iran-aligned Houthis attacking ship shipping lanes in the Red Sea, with the US pushing for the United Nations to support a temporary Gaza ceasefire, we could see a cooling in military action.
Conclusion: the technical outlook remains mildly bearish. Selling at $78.75 (bespoke), targeting $67.74 (measured move), with a stop loss of $81.90 (above the trend of higher highs), offers a risk-reward factor of 3.5R.
Resistance: $78.75 (bespoke), $78.78 (bespoke), $81.60 (trend line)
Support: $75.50 (bespoke), $72.55 (trend line), $67.74 (measured move)
Although tension in the Middle East continues, with the Iran-aligned Houthis attacking ship shipping lanes in the Red Sea, with the US pushing for the United Nations to support a temporary Gaza ceasefire, we could see a cooling in military action.
Conclusion: the technical outlook remains mildly bearish. Selling at $78.75 (bespoke), targeting $67.74 (measured move), with a stop loss of $81.90 (above the trend of higher highs), offers a risk-reward factor of 3.5R.
Resistance: $78.75 (bespoke), $78.78 (bespoke), $81.60 (trend line)
Support: $75.50 (bespoke), $72.55 (trend line), $67.74 (measured move)