At Extreme Investor Network, we are closely monitoring the current situation in the stock market and trading trends. The chance for a bearish continuation is on the rise as recent attempts to break out above the 200-Day MA have failed, signaling increasing weakness in the market. If the bulls do not take back control by the end of the week, crude oil could end with a bearish candlestick pattern.
To confirm a bear trend continuation, we will be watching for a drop below last week’s low of 76.83. Breaking below last month’s low of 76.86 would provide a second bearish signal, setting the stage for a potential move towards the 61.8% Fibonacci retracement at 75.49 and even down to the 78.6% retracement at 72.11.
On the upside, a rally above today’s high of 79.14 could lead to another test of trendlines and moving averages as strong resistance zones. When multiple indicators point to a similar price level, the significance is heightened, potentially leading to either a bearish continuation or a breakout with strong momentum.
For a comprehensive overview of today’s economic events and how they are impacting the market, be sure to check out our economic calendar for all the latest updates. Stay informed and stay ahead with Extreme Investor Network.