In the latest analysis of crude oil prices, the market commenced the week with a bearish gap, positioning the price in proximity to the support line of the bullish channel. Notably, the EMA50 intersects this support line, potentially safeguarding the continuation of trading within the channel. The immediate objective remains the coverage of this gap, paving the way for a resumption of the primary bullish trend, with a target set at $89.40.
The viability of the positive scenario persists, with careful consideration given to the significance of the $85.30 level. A breach below this threshold would impede the anticipated upward momentum, possibly initiating a bearish correction from the levels near $71.35.
Presently, crude oil prices hover near the support line of the bullish channel, following the commencement of the week with a bearish gap. The convergence of the EMA50 with this support line suggests potential support for maintaining trading within the channel. The resumption of the primary bullish trend is anticipated upon the closure of the existing gap, targeting the next significant level at $89.40. However, a breakdown below $85.30 would signal a cessation in the expected upward movement, likely triggering a corrective bearish phase.
The anticipated trading range spans between the support at $85.00 and resistance at $88.00.
Overall, the trend forecast for crude oil remains bullish, contingent upon the closure of the bearish gap and sustained momentum above key support levels.
