Light Crude Oil prices continue to extend its gains after prices broke above 53 yesterday. Candles now draw near the yearly resistance at 54.00 where we may see a reversal of the bullish run. Traders may await for a confirmation of a reversal at 54.00 before engaging in a shorting entry. However, bullish momentum of the pair remains relatively strong and we may see prices breaking above 54 this week.
Focusing on the hourly chart, bullish movements started to slow down as observed by the formation of shorter bullish candles. Currently, there are no confirmations of a reversal of the bullish run and traders should be patient and await for candles to re-test 54.00. However, for slightly aggressive traders, it is possible to engage in a shorting entry now and engage in another once candles show a confirmation of a reversal at 54.00. Due to its high volatility, should prices break above 54.00, we may see candles continue to rise and form a new high for the year.
|Bullish towards 54.00||50.00||51.57||52.96||54.00||55.00|