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As experts in the field of the stock market, trading, and Wall Street, Extreme Investor Network is here to provide you with unique and valuable insights that set us apart from the rest. Today, we’re going to dive into the importance of closing above moving averages and the potential upside in the current crude oil market.
Closing Above Moving Averages is Bullish
One key indicator of a bullish trend is when a stock or commodity closes above its moving averages. In the case of crude oil, the convergence of the 20-Day and 50-Day moving averages around the 71.58 to 71.61 price range signals a tight price support area. This area could potentially act as a pivot point for further price movement. Additionally, the recent crossover of the 20-Day line above the 50-Day line shows strength in the market.
If crude oil can maintain support above these moving averages, there is a possibility of continued upward momentum. However, a close below the moving averages may indicate weakness and signal further downside.
Initial Upside Potential to 70.78
Looking ahead, there is initial upside potential for crude oil to reach 70.78 if it can sustain its current strength. A bullish breakout would occur with a rally above the 73.15 interim swing high, followed by a close above it. This would confirm a bullish reversal in the market.
The 61.8% Fibonacci retracement level at 74.60 indicates a likely target for crude oil, with potential resistance near the lower boundary of a symmetrical triangle pattern. However, if crude oil breaks out of this pattern, the next target could be 70.78, completing an initial rising ABCD pattern.
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