WTICOUSD We need to shift to the weekly chart to better understand the potential downside for
WTICOUSD Crude Oil. Crude Oil has already broken below the daily, weekly, and monthly fractal support levels. The drop below the monthly fractal support at $65.65 has opened up the potential for a significant decline. With this key support level breached, Crude Oil is now at risk of testing much lower levels, possibly approaching the April lows. This would create the possibility of a bullish bat pattern forming around $24.88, signaling a potential reversal from these much lower prices.
On the resistance side, the monthly fractal resistance at $80.75 continues to be a major barrier, as well as the weekly fractal resistance, which reinforces the difficulty of any upward movement. The daily fractal resistance at $72.48 remains another obstacle for any short-term recovery attempts.
As for the support levels, Crude has already broken below the daily fractal support at $69.07 and the weekly fractal support at $65.40. These breaches now threaten the monthly fractal support at $65.65, confirming the bearish sentiment in the market. With these key levels broken, the market is showing clear signs of weakness, and the potential for further downside movement remains high.
At this stage, we should be cautious and watch closely for signs of a bottoming formation or a reversal pattern, but the immediate outlook suggests further downside risk.
Happy Trading,
André Cardoso
I am a financial market analyst based in Porto, Portugal. I provide market forecasts to a group of professional traders, playing a crucial role in assisting them in making well-informed decisions in the financial markets.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I am a financial market analyst based in Porto, Portugal. I provide market forecasts to a group of professional traders, playing a crucial role in assisting them in making well-informed decisions in the financial markets.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.