Light Crude Oil continue slumping, closing beneath 56.50. Falling off from its peak at 58.00, Crude Oil has dipped below 56.50 overnight. Holding near the session low – (56.10), Crude Oil appears to be waning on its bulls stance, as candlesticks have move below the 20 SMA (and beyond the uptrend channel). Paying close attention to the H4, such could be sign that the Crude Oil prices have peaked and may start to fall in the coming days. That said, prices will first have to trade below the support at 55.80. Trading above the mentioned level however could push the price higher toward the previous resistance at 57.30.
Meanwhile on the H1 chart, price action remains capped in the median mark of the 141.10% & 161.80% Fibonacci Extension. In confluence with the H4 chart, the interwoven 20 SMA & 55 EMA treads outlined the weakness in the commodity. Considering the recent selling pressure, traders are expecting Crude Oil price to extend lower. From the down side, trading above 55.60 is needed to keep the bullish expectation, while trading above 56.70 would establish the commodity to pose higher.