Crude oil achieves strong gains – Analysis - 21-08-2017

Crude oil price ended last week with strong rise to settle above 48.37 level, which forms positive factor that might push the price to attempt to return to the main bullish trend again, especially that the EMA50 supports the price from below.

But, on the other hand, the price still below the previously broken support of the bullish channel, besides that stochastic shows clear negative signals on the four hours' time frame, therefore, this contradiction between the technical factors makes us stay aside temporarily until we get clearer confirmation signal for the next trend, which we will get through breaching one of the key levels represented by 49.05 resistance and 48.37 support.

Note that breaking the mentioned support will push the price to return to the bearish trend that targets 45.40 followed by 44.10 levels mainly, while breaching the resistance will lead the price to achieve more gains that reach to 50.00 followed by 52.40 levels on the near term basis.

Expected trading range for today is between 46.00 support and 50.50 resistance.

Expected trend for today: Depends on the above mentioned levels