Crude Oil tests the recent low – Analysis - 26/01/2015

Crude oil price traded with clear negativity on last Friday to end the sessions at the recently recorded low at 44.77, placing new low at 44.34, and it shows attempts to recover now by trading above 45.00 barrier, but we notice that stochastic loses its bullish momentum on the intraday time frames, which might push the price to show more bearish bias in the upcoming period.

Now, we need to monitor the price behavior according to the key levels represented by 44.34 support and 46.40 resistance to confirm the next destination, as breaking the mentioned support will push the price to turn back to the main bearish trend, which its next targets located at 42.00 then 40.00, while breaching the resistance will motivate the price to achieve gains that begin at 49.65.

Expected trading range for today is between 43.00 support and 47.00 resistance.

Expected trend for today: Depends on the above mentioned levels