Crude oil prices have confirmed a notable break below the support line of the intraday bullish channel, marking the commencement of a bearish correction phase. This correction comes after the recent upward movement, stretching from 77.85 to 88.18. The trajectory of this bearish correction is expected to target negative objectives, beginning at 85.75 and extending to 84.25 upon surpassing the former level.
For the current trading day, the prevailing sentiment leans towards a bearish bias. It’s essential to observe that a break above 87.45 would halt the unfolding bearish scenario, potentially reigniting the primary bullish trend. Such a resurgence would set the stage for further gains, initially testing the level of 88.18 and extending to 89.95 in the near term.
It’s worth emphasizing that the continuation of the bullish wave necessitates maintaining a position above the support at 87.10.
As the trading day progresses, the projected trading range is expected to span from support at 84.50 to resistance at 87.50.
In summary, crude oil prices have embarked on a bearish correction phase, primarily due to the breach of the intraday bullish channel’s support line. However, the possibility of a renewed bullish trend remains contingent on remaining above the critical support level at 87.10.
