utsavroy

CRUDE OIL : STILL SOME MOVES LEFT

Long
FX:USOIL   CFD Petrolio greggio (WTI)
Crude oil is forming a descending triangle on the 4 hour time frame in an already established downtrend. Even though a descending triangle is a continuation pattern in general case but I believe that this descending triangle should be traded carefully as it might mark a trend reversal. My ideology is if crude breaks below 21.48, it will break out of the triangle and might go lower but it will find a very strong support in 12-18 region as this region marks the price of crude oil between 90's to 2001. Hence, I believe that crude might see a trend reversal from a down trend. My entry would be the closing of crude oil above 26.26 level as that would confirm the break of the descending triangle on the upward side and a completion of a downtrend. Fundamentally too, once the effect of coronavirus reduces and major industries such as airlines start to pick up, the demand will increase leading to a major increase in the price of crude oil so better trade on the buy side.
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