- November 18, 2020
- Posted by: admin
- Category: Forex Broker
Overview: Oil prices face some pressure ahead towards the downward movement. it approaches its seasonal weal time of the year. The distribution is clearly in favor of the sellers. The production of the oil tries to balance the oil rising but it may very difficult as a number of countries are bringing or will bring back the product in the market. The current level of the production of the market around 0.5 mln bpd. According to the market, its showing its negative volatility in the market and the pair will fall more towards the downside in the upcoming time. Pair entered one of its weakest periods of the year from a seasonal perspective. The losses tend to be large over seasonal perspective.
Technical Analysis: From the technical view we can say that pair is falling towards the downside in the market. If the daily trend line on us oil breaks lower, expect sellers as long as the price remains below the trend line. Bears are forcing the market go towards the south side. The market is creating bearish momentum in the market. On the 4 hourly charts, the market is forming the head and shoulder pattern which forces the market to fall bearish pattern is forming in the market. The market will fall from the support level 41.642. The major EMA lines are trading below the pairs. The crude oil price reflects the market volatility and liquid nature as well as oil is a benchmark for global activity. Hence, we suggest our sellers to sit on sell side in the market.
The RSI is below the 50 levels which are favoring the bears. A bearish crossover on MACD indicator is showing the weakness in the pair, the current price is 41.24. The support the 40.76 followed by 40.28 and the resistance is 41.74 followed by 42.14.
Trade Idea: From the above statement with can conclude that sell at 41.30 targets will be 38.45 -37.45 and loss will be 42.86.
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