Crude Oil Price Forecast: Key Support Levels Tested in Bearish Retracement Phase

Are you keeping a close eye on the stock market and the latest trends on Wall Street? If so, you’ll want to pay attention to the first test of the 20-Day MA support in the crude oil market. Today marks the first day that crude oil is testing the 20-Day MA as support since it rallied back above the line on June 10. This is a crucial moment that could potentially lead to a bull breakout above the trendline.

What makes this even more interesting is that crude oil has been preparing to break out of a large symmetrical triangle consolidation pattern. This pattern has been keeping crude oil within a tight trading range as uncertainty prevails. However, a bullish breakout above last week’s high of 84.74 could signal the beginning of a breakout from this pattern. Once there is a daily close above this level, we could see a significant acceleration in the advance of crude oil prices.

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But before we get too ahead of ourselves, it’s important to note that a period of rest and consolidation may be necessary before a renewed rally above last week’s high. The recent 12 point or 16.5% advance in crude oil prices in just 23 trading days has put it in an extended position, making a correction likely. Keeping an eye on the 20-Day MA support will be crucial in determining the next move for crude oil.

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