Crude oil price breaks the support – Analysis - 22-01-2021

Crude oil price opened today’s trading with clear negativity to break the bullish channel’s support line and settles below it, which hints the price head to turn to decline, especially that the price forms double top pattern that its signs appear on the chart, but we notice that the EMA50 attempts to protect the price from suffering more losses and return to the bullish channel again.

Therefore, we prefer staying aside until we get clearer signal for the next trend, noting that continuing the decline and breaking 51.70 will complete forming the mentioned negative pattern and push the price to suffer losses that start at 49.70, while breaching 52.80 represents the key to return to the bullish channel and resume the bullish trend that its next targets located at 54.60 followed by 57.34.

The expected trading range for today is between 51.00 support and 54.00 resistance.

The expected trend for today: Neutral