Advertisement
Singapore markets closed

  • Straits Times Index

    3,176.51
    -11.15 (-0.35%)
     

  • Nikkei

    37,068.35
    -1,011.35 (-2.66%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     

  • Bitcoin USD

    64,021.20
    +466.55 (+0.73%)
     

  • CMC Crypto 200

    1,377.11
    +64.49 (+4.91%)
     

  • S&P 500

    4,985.89
    -25.23 (-0.50%)
     

  • Dow

    37,966.49
    +191.11 (+0.51%)
     

  • Nasdaq

    15,383.46
    -218.04 (-1.40%)
     

  • Gold

    2,411.80
    +13.80 (+0.58%)
     

  • Crude Oil

    83.29
    +0.56 (+0.68%)
     

  • 10-Yr Bond

    4.6190
    -0.0280 (-0.60%)
     

  • FTSE Bursa Malaysia

    1,547.57
    +2.81 (+0.18%)
     

  • Jakarta Composite Index

    7,087.32
    -79.50 (-1.11%)
     

  • PSE Index

    6,443.00
    -80.19 (-1.23%)
     

Oil Sliding Faster Than You Can Blink

Nadia Simmons

Despite this setback, the bulls opened the week with a green gap, which has triggered modest improvement in the following hours. The bulls are fighting to invalidate the earlier breakdown below the green trend channel, and have reached the lower border of the blue consolidation on intraday basis. Prices have pulled back since though, and are currently trading at around $56.00.

Such price action looks like verification of the earlier breakdown. Coupled with the sell signals of the daily indicators, it suggests that lower crude oil prices are just around the corner.

Should we see such price action and another downside reversal today, the first target for the sellers will be today’s green gap.

ADVERTISEMENT

Summing up, the bulls’ difficulties in overcoming the new set of resistances: the 61.8% Fibonacci retracement, and the three gaps (pink, red and orange ones) were swiftly resolved to the downside on Friday. The steep slide took crude oil below the lower border of the rising green trend channel. Despite today’s bullish opening gap, the buyers are having trouble holding onto their gains. The sell signals of the daily indicators suggest upcoming downswing continuation. The short position remains justified.

If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Oil Trading Alerts to also benefit from the trading action we describe – the moment it happens. The full analysis includes more details about our current positions and levels to watch. Besides, you can still subscribe to our Alerts at very promotional terms – it takes just $9 to read the details right away and then receive follow-ups for the next three weeks at very preferred terms.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist

Sunshine Profits – Tools for Effective Gold & Silver Investments

This article was originally posted on FX Empire

More From FXEMPIRE: