Oil price got rejected yesterday once it reached the Daily Kumo (cloud) resistance at 47.30$. Oil price could be making a double top reversal here if we see price remaining below the Daily Kumo (cloud). A rejection at current levels will bring pressure to oil prices. A break below 46-45.70$ could signal a reversal confirmation and more downside ahead for Oil prices….the longer-term pattern remains bearish as price is making lower lows and lower highs. So we could be on the verge of the start of a new downward move towards 40$.
On the other hand if Oil price breaks above 48.50-49$ it could move towards the blue trend line resistance at 52$. Critical support is at 44.80-45.50$ zone.
Thank you for taking the time to catch up on my thinking.
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.