Crude Oil affected by the bearish pattern – Analysis - 30/03/2015

Crude oil price continued to decline on last Friday after completing the double top pattern mentioned in our last technical reports, to reach the bullish intraday trend line now located at 47.55, and the price is facing contradiction between the technical indicators, as stochastic offers positive signals on the four hours time frame that might assist to push the price to stop its current losses, while the EMA50 puts negative pressure on the intraday trading.

Therefore, we prefer staying aside temporarily in order to monitor the price behavior according to the key levels represented by 47.55 support and 49.65 resistance, as breaking this support will push the price to return to the main bearish track again, with targets that begin at 44.00 and extend to 41.50, while breaching the resistance will open the way to resume the bullish bias that its main targets start at 52.45 then 54.45.

Expected trading range for today is between 46.00 support and 50.00 resistance.

Expected trend for today: Neutral