Crude Oil negotiates the most important resistance – Analysis - 21/11/2014

Crude oil price rallied upwards clearly yesterday to settle at the most important resistance at 76.40, and as appears on the above chart, this level forms a neckline for a double bottom pattern, which means that breaching it will push the price to achieve intraday gains that its main targets reach 79.80.

The EMA50 offers positive support to the price, while stochastic shows clear negative signals on the four hours time frame, thus, this contradiction of the technical indicators make us prefer staying aside temporarily in order to monitor the price behavior according to the key levels represented by 75.00 support and 76.40 resistance, as breaking the mentioned support will turn the price to the main bearish trend again, and cancels the suggested positive formation.

Expected trading range for today is between 74.15 support and 78.00 resistance.

Expected trend for today: Neutral