Overview: – In the last week we have witnessed that bulls were doing so well at lower levels and they took the black gold at $57.73 and even during the week bulls tested $57.93 level. Well the way bulls are reacting we can see that the momentum is very slow but slow and steady wins the race. Bulls cleared all the major and minor EMA lines and presently surviving above the mentioned EMA lines.
Now we can say that crude oil has been bottomed out for short term point of view however we will get clear confirmation below $58 level, which is a key resistance level. In our previous report also we mentioned to buy the crude oil near the $52.20-10 level for the target of $54.50 and $57.00 with the strict stop loss of $50.50 and our target achieved like a cake walk so we are expecting that our readers must have made profit from this move.
Technical Analysis: – From technical prospective we can see that crude oil has received strong demand pressure from the $50.90 line which is a triple bottom pattern and bulls are doing so well with full of patience. The bullish engulfing candlestick has been posted on the daily chart which is providing us bullish signal and today’s closing matters a lot.
We need one more candle which should close above $58.00 level that will open the way towards the $60. Presently crude oil is trading above minor EMA lines and major EMA lines so it needs to break first. The 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 bears and intraday to weekly bias remains bearish on the crude oil as long as $57.80 level remains intact. The $57.80 level is immediate resistance level followed by $59.00 whereas $55.00 level is strong key support level followed by $52.50 level.
Trade idea:- Investors and traders are advised to buy the crude oil at current level $57.50-30 and for the target of $59 and $60 with the tight stop loss of below $55 on closing basis.
