Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, we are looking at the latest developments in the crude oil market and what they mean for investors.
The current support level for crude oil is crucial, as a drop below 73.87 could signal a continuation of the bearish retracement. This would likely lead to a test of support around the bottom rising trendline, forming a large symmetrical triangle pattern. Keep an eye on the recent swing low of 72.24 as well, as it could provide signs of support in the future.
Conversely, a breakout above today’s high of 75.72 would be a bullish signal for crude oil. This could indicate a bullish reversal and the completion of the retracement. It’s important to look for follow-through to confirm this trend reversal. While the symmetrical triangle formation doesn’t indicate a specific direction, bullish signs on the monthly chart suggest that support should be found above the 72.24 swing low.
As crude oil makes its way back up, the first potential resistance level to watch for is at 76.98, which corresponds with the 20-Day line. A daily close above this level would indicate strong demand for crude oil and could pave the way for a breakout of the triangle pattern.
Adding to the analysis is a rising ABCD pattern pointing to a target of 81.96. This target aligns with the 78.6% Fibonacci retracement at 82.07 and the long-term downtrend line, forming the top boundary of the symmetrical triangle. These levels provide key resistance to watch as crude oil potentially continues its upward trend.
For more in-depth analysis and to stay informed on all of today’s economic events, make sure to check out our economic calendar on Extreme Investor Network. Stay ahead of the curve and make informed investment decisions with our expert insights.