Crude oil price touches the negative target – Analysis - 02-03-2021

Crude oil price managed to touch our negative target mentioned in our last technical update at 59.60, noticing that the price found solid support at the main bullish channel’s support line, starting to provide positive trades now, supported by stochastic positivity.

On the other hand, breaking the bullish trend line that appears on the chart besides moving below the EMA50 form negative factors that might press on the price to exit the mentioned channel and start bearish correction on the intraday basis.

Therefore, we prefer staying aside until the price confirms breaking 59.60 support or breaching 60.40 resistance, noting that breaking the mentioned support will push the price to achieve additional decline that targets 56.65 areas on the near term basis, while breaching the resistance represents the key to resume the main bullish trend that its main targets begin at 63.75.

The expected trading range for today is between 58.50 support and 61.20 resistance.

The expected trend for today: Neutral