Crude oil faces negative pressure – Analysis - 05-12-2018

Crude oil price could not manage to hold for long time above 54.00 level, to trade negatively after touching the minor bullish channel’s resistance that appears on the chart, which we believe that it will form bearish flag pattern that its support line located at 50.50, thus, breaking this level will put the price under more negative pressure on the short term basis.

These factors encourage us to suggest the domination of the bearish trend in the upcoming period, noting that the next negative target is located at 49.10, taking into consideration that breaching 54.00 and holding above it will stop the suggested negative scenario and lead the price to recover again.

Expected trading range for today is between 50.00 support and 53.50 resistance.

Expected trend for today: Bearish