Crude OIl's near term weakness viewed as corrective onlyCrude Oil futures recently struggled to surpass the mid-April high of 83.53. This inability to break through signals a disruption in its short-term upward movement. This suggests a potential correction lower in the near future.
Any downward movement is likely to find solid support from the prior downtrend level around 77.70, as well as from the 200-day moving average and pivot point, which are in the vicinity of 77.00. These levels are expected to act as a buffer against a further decline and should spark a rebound.
Following this, an upward push is anticipated. There are indications of a base forming in the market over a longer timeframe. A decisive close above 83.53 would mark the completion of this base formation, projecting a longer-term target of over 100.
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