Crude Oil 4hr outlook – 07 March
Crude oil has continued its recent decline falling and closing below the 105.50 area suggesting a push back higher may be resisted.
The initial recent decline was started by a strong bearish pin bar reversal as seen in the below chart. 2 bearish Hikkake’s can also be seen strengthening our short term bearish outlook.
A bearish flag pattern has also started to form on the 4hr chart signaling further losses could be expected. A sequence of highs, lows, lower highs and lower lows is also starting to form which may confirm the bears are taking control.
With the strong bearish short term outlook traders may look to short crude, initially targeting the next level of support which sits at the 103.70 area.
We’ll be looking to short the market upon a break of yesterdays lows at the 104.50 area with initial targets placed at 103.70. With the strong bearish outlook at present, it may be possible to place a tight stop loss resulting in a 1:2 R :R ratio.
