Crude Oil faces solid resistance – Analysis - 06/05/2016

Crude oil price found solid support base formed by the previously broken bullish trend – the dashed line shown on image-, to trade negatively and fluctuate around 44.00 level now, thus, we prefer to continue with our neutrality until we get clearer confirmation signal for the next trend, which we will get through breaching one of the key levels represented by 43.20 support and 45.50 resistance

Note that the mentioned support represents potential neckline for an under construction double top pattern, which means that breaking it will push the price to suffer more losses, which its targets start at 40.95 and extend to 39.65, while breaching 45.50 resistance will lead the price to regain its short term bullish track and head towards 48.40 initially.

The contradiction between stochastic current positivity and the EMA50 negativity offers another reason for neutrality.

Expected trading range for today is between 41.00 support and 47.00 resistance.

Expected trend for today: Depends on the above mentioned levels