Crude oil poised for a rally up to $85 OR down to $33???
Crude oil has been on a good uptrend since the large 2018 retrace, the price has slowly trickled up and there is an indication that it continues. ONLY IF certain conditions are met. There is an equal likelihood that we could see a large dump...
Support structure is holding really well after a broke high on a larger scale at $53.00-$53.50. As of recent price has gone up a lot in the winter month due to high demand but could this be temporary seasonal inflation?
The Bull case: Price has been holding upside market structure over the past few weeks and months holding support at the $53.00-53.50 area, the trend is holding well and the downside volume has been decreasing. We need to see price break above $64.00 on a longer perspective on strong volume into the $70.00 area or so then retrace and hold that broken peak at the $64.00 as support. We want to see price then move through the $73.50-73.60 level.
The Bear case: Price overall is looking bearish based on the monthly candles lower lows lower highs from 2013 even, the impulse high that has to hold is at $73.60. As long as price remains beneath that level we could see a press lower. The buy volume is looking really weak as well to the swings higher, which means this could be seasonal buying of crude which could evaporate. If price breaks below $53.00-53.50 and holds it as resistance on the retrace we might see a move even lower down to the $33.00 area and even below that.
Disclaimer: This is a trade idea for educational purposes only. This does not constitute as investment or trading advice. TRADEPRO Academy is not responsible for any market activity.
Support structure is holding really well after a broke high on a larger scale at $53.00-$53.50. As of recent price has gone up a lot in the winter month due to high demand but could this be temporary seasonal inflation?
The Bull case: Price has been holding upside market structure over the past few weeks and months holding support at the $53.00-53.50 area, the trend is holding well and the downside volume has been decreasing. We need to see price break above $64.00 on a longer perspective on strong volume into the $70.00 area or so then retrace and hold that broken peak at the $64.00 as support. We want to see price then move through the $73.50-73.60 level.
The Bear case: Price overall is looking bearish based on the monthly candles lower lows lower highs from 2013 even, the impulse high that has to hold is at $73.60. As long as price remains beneath that level we could see a press lower. The buy volume is looking really weak as well to the swings higher, which means this could be seasonal buying of crude which could evaporate. If price breaks below $53.00-53.50 and holds it as resistance on the retrace we might see a move even lower down to the $33.00 area and even below that.
Disclaimer: This is a trade idea for educational purposes only. This does not constitute as investment or trading advice. TRADEPRO Academy is not responsible for any market activity.
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