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12/05 Crude Oil struggle for direction

12/05 Crude Oil struggle for direction

120515 Crude Oil Daily Crude Oil 12th of May – D1 (Chart time 1:30GMT)

Crude Oil struggle for direction as price remains weak. Crude oil price shows weak trading ovenright and hovers around the 120 days EMA with trading confined between the range of 58.80 (support level)  and 59.80 (resistance level). Despite China rolling out its third interest rate cut in six months over the weekend, Oil prices failed to get any boost as price action merely recorded small gains. That said, there is a distinct possibility that the recent oil rally is about to run out of steam.

120515 Crude Oil H4 Crude Oil 12th of May – H4 (Chart time 1:30GMT)

Crude Oil held in a tight range yesterday, on observation of prices well capped between the 100.00% and 127.20% Fibonacci Expansion mark on the H4 chart. The clear failure to move further up the resistance at 60.10 area has seen the bears gaining the upper hand at the start of the week. Such scenario renders a good chance that prices will continue to move on the downside in confluence of the technical indicator of 20 SMA & 55 EMA lines interlocking in the process. Any move down towards the neckline support at 100% Fibonacci Expansion would give further evidence that a turn lower of some significance is trying to unfold. Alternatively, a move through the resistance at 60.00 would invalidate the negative potential cyclicality and have Crude Oil re-focus attention higher.

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120515 Crude Oil H1 Crude Oil 12th of May – H1 (Chart time 1:30GMT)

Crude oil price continues to fluctuate between 38.20% and 50.00% Fibonacci Retracement level on the H1 chart. The push through the declining 20 SMA & 55 EMA line posed the first real clue that the commodity is in a phase of correction of late and is forming its support line at 58.80 region. While breaking the support will push on the price to extend its bearish correction and reach 58.30, we will simply have to wait and see the scenario do indeed happen. As things now stand, let’s see what Crude Oil wants to do as we move forward

Trend Direction
 S3
S2
S1
R1
R2
 R3
 
Slightly bearish  56.50  57.40  58.80  59.80  61.10  62.60

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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