1 Week after the beggining of conflict between Israel and Iran in the middle east, Crude Oil is down 3.66%. Price began trending down all week and then on Thursday there was news of a bombing by Israel which caused a spike in Oil(3.5). This whole move was corrected and we are back to being down on the week. This opposes what I believed may play out this week as my thoughts were 1. Oil is a precious commodity and needed in War 2. The trend thus far this year is Bullish (we are up 13.82%) The market is instead going down and retraced this week. We are currently sitting on the Daily support level 81.23. Price action looks bearish on the Daily as we have a large top wick on the current candle.. moving into the next few weeks we will have a bearish weekly candle behind us that may aid in a descent towards the next Daily level 80.65 and beyond to the next weekly level 77.82. Also, this is in line with current risk-off market sentiment as Oil (Risk-on) is a commodity after all
Daily timeframe : The Daily timeframe retested Daily resistance (85.65) and we rejected.
Daily timeframe : The Daily timeframe retested Daily resistance (85.65) and we rejected.
Comment:
Update: Price has decreased to begin the new week. We were anticipating a decrease . Price is showing bullish candlestick patterns on the intra-day timeframes like 1hr and 4hr and so we haven't quite left the Daily areas yet at 81.23 and 80.65
Comment:
Moving Bearish as anticipated. The Oil market failed to move higher with the War conflict after the first 1.5 weeks so we therefore made this conclusion on subsequent direction in the following weeks.
