Crude Oil requires attention – Analysis - 27/05/2015

Crude oil price traded with clear negativity yesterday to attempt to break the critical support level at 58.18, but in managed to settle above this level with a daily close above it, accompanied by clear positive signals that comes from stochastic on the four hours time frame, which encourages us to keep preferring the overall bullish trend in the upcoming period, and the price needs to rally higher and breaching 60.10 level to provide strong positive motive that supports the chances of targeting 62.56 then 66.10 levels, which represents the first main station.

On the other hand, we should take into consideration that the support level at 58.18 became represents a potential neckline for a technical bearish pattern that appears in the image, which means that confirming breaking it will stop the expected positive scenario, and pushes the price to turn its track to the downside, the negative targets begin at 55.50 and it might extend to 53.30 before any new attempt to regain the bullish trend.

Expected trading range for today is between 57.00 support and 61.00 resistance.

Expected trend for today: Bullish