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Crude Oil Bounces Up From Double Bottom

Published 05/07/2014, 07:22 AM
Updated 02/02/2022, 05:40 AM
CL
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Crude Oil has bounced sharply up after forming a double bottom on a 4 hour time frame. The double bottoms are reversal bullish patterns and when they are formed near the support zone, their significance increases further. However, the price is trading below the 50 day (shown in yellow) and 100 day (shown in red) moving average which means that the bears are still in control of the price and unless the price breaks above these averages the bias still could be to the downside.

Having said that, the RSI index is trading in line with the price action which means that the bias could be to the upside.

Crude Oil Chart

Resistance Zone: 102.52- 101.71

Support Zone: 99.45-98.82

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.

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