Crude oil prices embarked on today’s trading session with a substantial bullish gap, retracing to test the previously breached support level of the primary bullish channel, as depicted on the chart. It is noteworthy that this level is currently encountering robust resistance, with the added reinforcement of the EMA50 coinciding with it. Additionally, the stochastic indicator has entered overbought territory.
In light of these developments, the expectation is for bearish trading activity to emerge in the forthcoming sessions. Initial targets for this potential decline are set at 84.55, with the possibility of extending further downward to 81.20 should the preceding level be successfully breached. It is important to emphasize that breaching the 87.15 level would interrupt the anticipated decline and redirect the price back towards the primary bearish trajectory.
The expected trading range for the day is projected to range from the support level at 84.50 to the resistance level at 87.60.
Today’s anticipated trend is leaning towards a bearish bias, contingent on the conditions specified above.
