Crude oil prices underwent a significant negative movement yesterday, reaching the vicinity of 70.50. Although the prices exhibited a bullish rebound, hovering around the breached support line of the bearish flag pattern, the EMA50 is acting as an intraday resistance. Simultaneously, the stochastic indicator has relinquished its positive momentum, entering the overbought regions.
Given these factors, a suggested resumption of the decline is indicated, with a target initially set at 70.00 and potentially extending further towards 67.04 upon breaching the aforementioned level. It is noteworthy that a decisive breach of the 73.73 level would invalidate the anticipated decline, paving the way for the establishment of a bullish wave in the short term.
Traders are advised to monitor key levels closely, with the expected trading range for today fluctuating between support at 71.70 and resistance at 73.70. The prevailing trend for today is anticipated to be bearish, aligning with the current technical dynamics.
