Fundamental Analysis
Crude oil bounced from its low due to the excessive sell off which took place on the back of Iran news. The cold weather over in the US has also helped the price to move higher, however, it is easing off from its recent high of 32.65. The critical point of $30 is under the spotlight and if we break below this level, we could see the selling pressure start to build up on the energy sector again which will have its impact on the US markets.
Technical Analysis
Crude oil has broken its upward trend line on a 60 minute time frame. The price is touching the lower line of the Bollinger band®, which reflects that the selling pressure is building up. However, it can bounce back up from this point as in a technical world, the piercing of the lower line of the Bollinger band is considered as a sign of reversal trade.
The RSI has also eased from its over bought zone and it is trading in line with the price action. This confirms that current price movement has momentum behind it.
Important Zones
34.29-33.96 Resistance Zone
29.64-29.33 Support Zone
Disclosure and 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.