Crude Oil Breaks with bearish structure
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Crude breaks with bearish structure
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Big support level around $60
After our call last week of oil topping at around $64/B inside of a bearish structure bears took control and price fell 356 ticks (-5.58%) within a couple of days.
After breaking with an immediate bearish continuation pattern (bold white) and a longer-term bearish structure (dotted white), we are now at a high-value zone where buyers are going to be found and short term sellers are going to be taking profit.
This area around the $61/Bis a previous zone of high volume and bears are going to have a difficult time breaking below.
Should price break below this zone I see as the next bearish target the 161.8% retracement of the flag (bold white) which confluences with the next value zone at around $57.90/B. This would mean a 585 tick dip (-9.17%) from the top of the flag. In any case, we will be selling rallies below $60/B.
Author
Orlando Gutierrez
Learn 2 Trade
Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.
