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 but in this week bears got the charge and took the bears towards the south side and covered all the gains of the previous week. Now we can say that tug of war is going on between bulls and bears and it is very tuff to say anything for the time being.
Technical Analysis: – From technical prospective we can see that crude oil has received strong supply pressure from the $58.05 line which is a resistance of 200 SMA line. The bearish engulfing candlestick followed by bullish marabuzo candlestick has been posted on the daily chart which is providing us bearish signal and today’s closing matters a lot.
We need one more candle which should close above $54.00 level that will open the way towards the $50. Presently crude oil is trading below minor EMA lines and major EMA lines. The RSI is already at below 50 line which is favoring the bears. The MACD indicator is also supporting the bears with a bearish 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 $52.00 level is strong key support level followed by $50.50 level.
Trade idea:- Investors and traders are advised to sell the crude oil at current level $55.50-60 and for the target of $54 and $53 with the tight stop loss of below $57 on closing basis.
