Crude Oil: oil prices are consolidating - Market Talk | Alice Blue Blogs – Get Latest Stock Market updates from Our Experts in Online Trading Platform
Sunday , June 20 2021
Home / Market Trend / Crude Oil: oil prices are consolidating
crude oil

Crude Oil: oil prices are consolidating


RecommendationBUY STOP
Entry Point3838
Take Profit3970
Stop Loss3760
Key Levels3838, 3910, 3970, 4150, 4296


Alternative scenario
RecommendationSELL STOP
Entry Point3756
Take Profit3607
Stop Loss3840
Key Levels3607, 3550, 3460, 3320


Poor data on Factory Orders published on Monday in the United States was the reason for the emergence of negative dynamics.
In turn, the instrument is supported by the tense situation around Venezuela, against which the US may impose sanctions. Additional support comes from OPEC, as the cartel intends to continue to cut oil production in order to stabilize supply and demand in the market.
The report of the American Petroleum Institute reflected a moderate increase in oil reserves, which did not contribute to the development of “bullish” trend of the instrument. Over the week up to February 1, US Crude Oil Stock grew by 2.514M barrels after an increase of 2.098M barrels in the previous period.

Current trend (Down)

According to EMA cross in daily, crude oil major trend still running downtrend. The 50 EMA is running below 150 EMA means downtrend is prevailing.  But minor trend is just placing uptrend at the price of 3810.

Pattern (Probability to create Head and Shoulder)

After topping on Oct 3rd 2018, at 5669 crude price was continuously falling to the price of 3469. Dec 4th crude given retracement and created a new high at the price of 3867. On 26 Dec 2018 its record a new low price 2995. After bottoming the level of 2995. crude created a new high at the price 3902 on Jan 21st  2019. and giving retracement to 3662 on Jan 28th and forming a head and shoulder pattern.

Support and resistance

EMA 20 and 50 in D1 chart show strong support. The price range is almost unchanged, significantly limiting the prospects for further growth of the instrument. %R trying to reverse toward -20 zone. And having formed a weak sell signal (located below the signal line). The development of a full-fledged downtrend is possible in the short and/or ultra-short term.
Resistance levels: 3901, 4016, 4154
Support levels: 3747, 3604, 3461

Trading tips

To open long positions, one can rely on the rebound from the support level of 3747 with the subsequent breakout of 3901. Take profit — 4016 or 4154. Stop loss — 3747.
A breakdown may be a signal to further sales with target at 3604 or 3461. Stop loss — 3904.
Implementation time: 2 to 3 week.

Share on

About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

Check Also

Crypto Currency

Investment Power of the Next Crypto Currency

After several years of consolidation in crypto markets, new innovative protocols are attracting interest. Interest has …

Leave a Reply

Your email address will not be published. Required fields are marked *