Crude Oil post fifth consecutive weekly losses. Crude Oil falls to its lowest at 50.10 (since April 12th, 2015) last week, as the agreement reached between Iran and the six world powers on Tehran’s nuclear program, clears the way for an easing of sanctions on Iran. With the Iran deal, traders are aware there is more supply coming, which establish the impetus for a price correction. Technical pattern on the weekly charts has been lowered to the 61.80% Fibonacci Expansion at 50.30. As the level is a major support and if that is broken, we’re slated for sharply lower prices ahead.
Crude Oil fell slightly on Friday, plummeting to a four-month low, amid continuing fears of a glut of oversupply on the global energy markets. Prices have stuck to lower bound of the current range, settling at 50.80, within striking distance off the 61.80% Fibonacci Expansion mark. Momentum signals point to lower extension, with resistance is seen near the weekly highs at 53.40. Despite that, the Crude bears had better wait for the break of a support level at 50.30 before considering short positions. On the contrary, any upward rebound above the 53.40 would further validate the range.
Crude Oil continues to make new lows as prices go in the direction to the downside. Hitting the month low, prices are trading far below its 20, 55 & 200 MA lines, reinforcing the view that the trend is aggressively to the downside. Bouncing back the 0.00% Fibonacci Retracement mark, momentum remain negative with the candles running into resistance off the downward sloping trajectory. Despite the overly sold reading, price could foreshadow a correction to the upside still. A break above 51.20 support turned resistance would probably extend the rebound for the commodity.