Crude oil is trading below its downward trend line on a 4 hour time frame. This confirms that the trend is towards the downside and as long as we trade below this trend line, the bias remains towards the downside. The price is also trading near the 50 day moving average shown in yellow and above the 100 day moving average shown in red. Although, it is important to emphasise that the 50 day moving average has crossed the 100 day moving average from below and this is considered as a bullish signal.
In terms of pattern, we have formed a descending triangle pattern and if the price breaks towards the upside, we could easily reach our resistance level which is shown below.
Important Zone
54-52 Resistance Zone
40-38 Support Zone
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam