Crude Oil recovers – Analysis - 12-01-2017

Crude oil price ended yesterday's trading above 51.70 after the strong rally the appeared at the evening, which puts the price back to the main bullish track, especially that the price moves inside new bullish channel that its signs appear through chart.

On the other hand, the price faces solid resistance formed by the EMA50 that stopped the bullish rally, accompanied by stochastic move inside the overbought areas, therefore, the contradiction between the technical factors makes us prefer staying aside temporarily until the price manages to surpass one of the key levels represented by 52.65 resistance and 50.95 support to detect its next destination clearly.

Note that breaching the mentioned resistance will confirm regaining the bullish trend that its targets begin at 55.27 and extend to 56.50, while breaking 50.95 support will push the price to continue the bearish correction and test 48.37 initially.

Expected trading range for today is between 50.00 support and 54.50 resistance.

Expected trend for today: Depends on the above mentioned levels