Crude Oil Downside – To stay in extended pressure on Thursday, see below pressure until the market remains at 4190 at the top 50% level. At the end of the day, the first sign of strength will return to the main bottom at 3826.
The US West Texas Intermediate crashed below the crude oil market on Thursday after heavy hedge funds’ sale, following a violation of the Moving Average of 200 days. Prior to this move and before triggering a wave of sell stop, the market was already trading with a strong negative bias, because of the growing tensions on US-China trade relations and slowing global economic growth.
Price action also shows that buyers who are speculating on the increase in geopolitical tensions in the Middle East might have to sort out their positions on reports that the White House could negotiate the talks between the United States and Iran.
According to the daily swing chart, the main trend is down. And Down trend was re-confirmed on Thursday when the short sellers exited the market at 4190 via the previous main bottom. The sell-out wave also started.
Further confirmation of Downtrend came when seller took the main bottom of March 24 to 4030. The new lower main top 4465. Through this level, they change the main trend.
The main range is 5669 to 2995. Its Retirement Zone is controlling the long-term period of the market from 4190 to 4660. This triggered an additional sales stop, which helped in accelerating the market decline.
The short-term range is 2995 to 4669. If the speed continues downward, then possibly looking for selling to expand your retracement zone from 3819 to 3640.
Daily Technical Forecast
To stay in extended pressure on Thursday, see below pressure until the market remains at 4190 at the top 50% level. At the end of the day, the first sign of strength will return to the main bottom at 4030.
If the seller pressure continues, look for the negative side another acceleration with the goals coming at 3820 and 3640.