The price of crude oil has inched within close proximity to our initially anticipated target of 81.20, where it has discovered substantial support, leading to a modest uptick in bullish sentiment. This recent development has prompted a temporary shift in the market’s bias, as it prepares to resume its bearish trajectory, targeting a breach of the 81.20 level and ultimately setting sights on the next corrective target at 77.86.
The bearish trend scenario is poised to continue influencing the market in the near term, reinforced by the ongoing downward pressure exerted by the Exponential Moving Average 50 (EMA50). However, it is essential to bear in mind that a failure to breach the 81.20 level may temporarily lead the price to explore the 84.55 area before embarking on a renewed attempt to move lower.
For today’s trading sessions, the expected trading range is likely to fluctuate between the support level at 80.50 and the resistance level at 83.40.
In summary, crude oil prices have come within touching distance of the initial target at 81.20, where solid support has emerged, sparking a temporary resurgence of bullish sentiment. Nevertheless, the overall outlook remains bearish, with the 81.20 level serving as a crucial hurdle to overcome on the way to the 77.86 corrective target. The bearish trend, supported by the EMA50, remains in play. Traders should be aware that a failure to breach 81.20 could lead to a temporary move towards the 84.55 region before resuming the downward trajectory. The expected trading range for the day is forecasted to span from the support at 80.50 to the resistance at 83.40.
