Nadia Simmons
Sunshine Profits
Crude oil futures declined sharply on Friday. The steep slide’s result was a breakdown below the lower border of the rising green trend channel. As the prices closed the day below the formation, it’s clearly a bearish development.
Despite this setback, the bulls opened the week with a green gap, which has triggered modest improvement in the following hours. The bulls are fighting to invalidate the earlier breakdown below the green trend channel, and have reached the lower border of the blue consolidation on intraday basis. Prices have pulled back since though, and are currently trading at around $56.00.
Such price action looks like verification of the earlier breakdown. Coupled with the sell signals of the daily indicators, it suggests that lower crude oil prices are just around the corner.
Should we see such price action and another downside reversal today, the first target for the sellers will be today’s green gap.
Summing up, the bulls’ difficulties in overcoming the new set of resistances: the 61.8% Fibonacci retracement, and the three gaps (pink, red and orange ones) were swiftly resolved to the downside on Friday. The steep slide took crude oil below the lower border of the rising green trend channel. Despite today’s bullish opening gap, the buyers are having trouble holding onto their gains. The sell signals of the daily indicators suggest upcoming downswing continuation. The short position remains justified.
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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