Crude Oil rebound to settle week near 60.00, as technical pattern appears to be running out of steam. Despite the slew of weak U.S. economic data causing the greenback to fall, Crude Oil has been behaving to the contrary of late as price fluctuate within the 141.10% and 161.80% Fibonacci Retracement mark. The mixed trend played out in the week, points to the possibility of a bearish bias, as technical pattern looks to wait on better chart structuring to form. While the week’s close did had candlesticks pushing lower from its high, the overall scenario remains positive and should remain supported by current uptrend channel.
Pushed to the support at 58.40 in early trading session, price pared its loss to move near 60.00 region as the U.S. dollars continue to hit the lower bounds of the index (Economic data remains unconvincing). Holding near the 60.00 region, the overshadow of the mild slump is sitting the technical pattern on the sidelines as the commodity awaits for better development of chart structure. In broader term, it is hard to determine exactly what the price action would favor more currently; given that several energy companies are in belief that Crude Oil could turn lower in the near term.
Running out of its bull momentum, candles have bumped right up against the resistance at 59.95 on Friday. In credence, candles are further added on to the foray with price action trading below the 20 and 55 MA lines. Technically, the market is holding well at the anticipated range of 58.70 – 60.10 for the current moment and we are of opinion that prices should “bump” up again soon. That said, price needs to hold above 58.80 to keep the positive overview on for the short term.