Crude Oil completes negative formation – Analysis - 31-10-2016

Crude oil price achieved strong break to the key support areas 49.34-49.05 and settled below them, to complete forming head and shoulders' pattern that its signs appear on the above chart, which puts the price under negative pressure that we expect to push trading towards 46.20 areas before any new attempt to regain the main bullish trend.

Therefore, the bearish bias will be suggested in the upcoming sessions supported by the negative pressure formed by the EMA50, taking into consideration that breaching 49.05 followed by 49.75 levels will stop the current negative pressure and lead the price to resume the main bullish trend again.

Expected trading range for today is between 46.20 support and 50.00 resistance.

Expected trend for today: Bearish