Crude Oil retests – Analysis - 01-08-2016

Crude oil price is retesting the previously broken 38.2% Fibonacci level that turns into key resistance at 41.87, accompanied by stochastic reach to the overbought areas, besides the continuous negative pressure provided by the EMA50.

As we mentioned in our recent reports, holding below this level will keep the negative scenario valid for the upcoming period, therefore, these factors make us keep our bearish overview that its next target located at 38.84, taking into consideration that breaching 41.87 followed by 42.80 levels will stop the expected decline and lead the price for recovery attempts and regain the main bullish trend.

Expected trading range for today is between 38.84 support and 43.00 resistance.

Expected trend for today: Bearish