Crude Oil bounce off low, retesting 51.00 level. Crude Oil rose on Tuesday, trading to the high at 51.40 as the fall in U.S. dollar strength help overcome the bearish move for the commodity. Closing the day at 50.60 (within striking distance at the 61.80% Fibonacci Retracement mark), price traded between the low of 50.10 and a peak of 51.40. Despite the bounce observed, the trend is still bearish as candles continued to edge sharply lower towards 50.00 mark. With a downward sloping trajectory very much in force, Crude Oil look poised to test the targeted support near the March lows at 49.50.
Bouncing off a 15-week low on Tuesday, Crude Oil is recovering to trade within the 0.00% & -10.00% Fibonacci Retracement region on the H4 chart. Somehow, the current level is providing some hope for a stiff support as any push lower than the level see price pushing back thereafter. But this is not the end of the crude bear market as any move below the level is likely to trigger further stop loss order. Expected trading range for today is between 49.50 support and 51.50 resistance.
Slashing its way through the trend line resistance at 50.90, price is back trading at the lower range at 50.40. Momentum remains negative as technical formation look poised to test target support near the March lows at 49.63. With the candles capped in between the 20 & 55 MA line, price looks to be hinting for a short term bullish move. Such trading notion would need the justification of time to adjust, but should it move otherwise, a further fall could be witnessed.