14 September, AtoZForex.com, Singapore — Crude Oil end week relatively flat, down by 1%. Ending Friday’s session at 44.80, Crude Oil’s correction from the 39.90 level (YTD bottom), remains in formation, as any attempt to break above the 45.20 level on the weekly chart, proves to be hard for the commodity.
In fact, technical posture is suggesting that favoring of further down trend ahead for the commodity. With more and more call that the oil market is more oversupplied than we had expected, we are increasingly convinced that the Crude Oil would continue seeing lower prices for the longer term.
Therefore, the above mentioned factors encourage us to continue suggesting the bearish trend in the upcoming sessions, noting that breaking 44.00 level will offer the most important key to push the price towards our main target at 43.30 level.
Crude Oil fell sharply on Friday, after report off the Goldman Sachs (lowering its forecast for Crude Oil prices to $45 a barrel from $57 previously), had the commodity shedding close to 2%. In the aftermath of a very-bearish report from GS, price wavered between 44.20 and 45.80, with technical posture confined within a bearish flag period. Despite that, the fact that the GS report has not triggered a break beneath the 44.00 support level, does pose a sign of impressive relative strength. Such note gives the rise that technical formation could be suggesting the positive juxtaposition that Crude oil is in the midst of an incomplete recovery rally.
Testing the 20 & 55 MA lines on the H4 chart, technical posture is forming its intra-day support base at 44.80, waiting to break this level to ease the mission of continuing the bearish bias in the upcoming period. Beside, moving in a sideways momentum, near-term pattern work (printing in a flattening trajectory), is indicating strongly that Crude Oil is utterly indecisive .Therefore, the above mentioned factors does encourage us to continue suggesting the bearish trend in the upcoming sessions. Expected trading range for today is between 44.40 support and 45.30 resistance.
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