The price of crude oil reached the psychologically significant resistance at 70.00, as we forecasted in our last analysis of the commodity (link below). Now, the price looks ready to establish a new bearish correction towards the 23.6% Fibonacci retracement level.
The emergence of a Bearish Engulfing candle from the psychological resistance level and the evolving Divergence (underpinned by the MACD indicator) confirm these expectations.
The current consolidation of the price action between the 20-day MA (in red) and the 50-day MA (in green) is the first stage of development of the new correction.
The emergence of a Bearish Engulfing candle from the psychological resistance level and the evolving Divergence (underpinned by the MACD indicator) confirm these expectations.
The current consolidation of the price action between the 20-day MA (in red) and the 50-day MA (in green) is the first stage of development of the new correction.
