Oil at important resistance area

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.

 

 

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