Overview: – Well this is the last week of the year 2019 i.e. Christmas week where most of the traders and investors are on holiday mood due to which we are witnessing a very slow momentum in most of the commodities. From past couple of weeks we are witnessing a bullish momentum in the crude oil. Overall it bounced from the $50 level with the formation of double bottom pattern and in this week it marked a high of $61.38 level.
Technical Analysis: – From technical prospective we can see that crude oil is trading between a short term uptrend channel, where bulls are making successively higher highs n higher lows. Well we are expecting that the trend is clear but momentum is slow so we may see further buying in the crude oil till 4555 in coming weeks. Overall pair is trading above all major n minor EMA lines. A daily closing above $62 level will open the way towards the $64 and $65 level in near term. RSI is already at above 50 line which is favoring the bulls. The MACD indicator is also supporting the bulls with a bullish crossover on the MACD.
What next:- Odds are in favor of bulls and intraday to weekly bias remains bullish on the crude oil as long as $58 level remains intact. The $64 level is immediate resistance level followed by $65 whereas $58 level is strong key support level followed by $57 level.
Trade idea:- Investors and traders are advised to buy the crude oil at current level $60 and for the target of $62.50 and $64 with the tight stop loss of below $58 on closing basis.
