Crude Oil dropped over $6 lately, and reached as low $77.02 a barrel. Just when it seemed that Crude oil is about to drop further, possibly towards the $70 level, the bearish move was halted. Will crude continue to drop, or is a bullish correction impending?
• The chart below is the Crude Oil 1-day chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI). The Fibonacci Retracement lines were used as well.
• There is a very distinct doji candle on the chart, which indicates the lowest price crude oil reached recently.
• Such a doji usually indicates that a correction is on it way.
• The Slow Stochastic provides a bullish cross, also indicating that the momentum is now bullish.
• The next resistant level is placed at the $79.50 level. If this level will be breached, a sharp upward move could take place, with potential to reach the $84.00 level.
• HOWEVER, if the bullish move will fail to reach the resistance level, it could drop all the way down to the 61.8% line, which is located at the $76.70 level.
Crude Oil 1-Day Chart
