Crude oil reversal pattern is brewing, rebounding upwardThe U.S. Energy Information Administration said that weakened demand and strong OPEC+ production increases may lead to an increase in oversupply in the oil market in the second half of the year. Oversupply concerns dragged down oil prices.
From the daily chart level, crude oil has a downward trend in the medium-term moving average system, and the medium-term objective trend direction is downward. After the oil price hit the low of 55.20, the frequent alternation of long and short positions was formed. In the medium term, the momentum of the short position is accumulated, and it is expected to further decline to the 50 position in the later period.
Summarizing the above views, Quaid made the following analysis:
The short-term (1H) trend of crude oil remains in a narrow adjustment at the right shoulder position of the head and shoulders bottom reversal pattern. The current oil price has not broken through the neckline position, so the reversal pattern has not yet been established. The short-term objective trend direction is a shock rhythm. It is expected that the crude oil trend will break through the neckline and form a small upward rhythm with a high probability.
Today: 59.00 long, stop loss: 55.10, target 65.00.
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