Crude Oil within the bearish correctional track – Analysis - 02/07/2015

Crude oil price suffers clear losses yesterday to break 58.18 level and settles with a daily close below it, which puts the price within the bearish correctional track of the bullish wave, which measured from 44.02 to 62.56, so we believe that the way is open to visit 38.2% Fibonacci correction level at 55.50 in the upcoming sessions.

The EMA50 supports the expected decline, while stochastic positivity might push the price for some temporary positive attempts and a potential retest to 58.18 level before resuming the bearish bias, and monitoring the price behavior when reaching the targeted level is important, where breaking it will extend the bearish correctional wave to reach 53.30 levels.

On the other hand, breaching 58.18 level will stop the current correctional pressure and pushes the price to attempt to regain the main bullish trend.

Expected trading range for today is between 55.00 support and 58.50 resistance.

Expected trend for today: Bearish