Oil prices rose significantly in the last few days and it is currently trading at $65.34 per barrel, reaching its highest level in almost two weeks, as equities firmed and the Dollar fell on hopes of a global economic recovery. Oil prices surprised many traders today as the price continued to climb above $65 a barrel. However, as I will demonstrate below, the price of Crude Oil may very well be heading for a reversal.
• The chart below is the 4-hour chart for Crude Oil by ForexYard.
• The technical indicators used are the Slow Stochastic, RSI and MACD.
• Point 1: RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move maybe in a downward direction.
• Point 3: The MACD also supports the downward direction.
