Crude Oil Weekly Technical Analysis
Currently, Crude Oil is forming a descending triangle on the weekly timeframe, with significant support at the 0.5 Fibonacci retracement level. This level is a critical point; a break below it could signal further bearish momentum. Should this support level fail, I expect the price to target the next Fibonacci levels at 0.618 and potentially down to 0.786, indicating possible continuation of the downward trend.
I will monitor for confirmation signals of a breakout to the downside, such as increasing volume or bearish candlestick patterns, before confirming a short position. However, if support holds, the triangle could consolidate further, so I will remain cautious for potential reversal signs.
My Approach
1. Weekly timeframe as a guiding framework
2. Daily for pattern confirmation
2.1. Bearish Candlestick formation below support (like a bearish engulfing or strong red candle).
2.2. Rejection candles near the descending upper resistance line (like doji or shooting star).
2.3. Increase in volume on a breakdown below support to confirm seller commitment.
2.4. Decreasing volume within the triangle as consolidation continues.
2.5. Spike in volume on a failed breakout could indicate a false move and potential reversal.
3. 4-Hour for entry
I will monitor for confirmation signals of a breakout to the downside, such as increasing volume or bearish candlestick patterns, before confirming a short position. However, if support holds, the triangle could consolidate further, so I will remain cautious for potential reversal signs.
My Approach
1. Weekly timeframe as a guiding framework
2. Daily for pattern confirmation
2.1. Bearish Candlestick formation below support (like a bearish engulfing or strong red candle).
2.2. Rejection candles near the descending upper resistance line (like doji or shooting star).
2.3. Increase in volume on a breakdown below support to confirm seller commitment.
2.4. Decreasing volume within the triangle as consolidation continues.
2.5. Spike in volume on a failed breakout could indicate a false move and potential reversal.
3. 4-Hour for entry
Note
I am sharing my thought process on these market moves and adjust my analysis as the market evolves. This is not meant to be followed by others, as I am prone to mistakes like anyone else. Instead, I welcome feedback that can help me question and refine my analysis.
Disclaimer
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