Crude Oil tests the key resistance – Analysis - 03/09/2015

Crude oil price traded with clear positivity yesterday to test the critical resistance at 46.85, as we mentioned in our yesterday report, holding below this level keeps the negative scenario valid until now, where it represents 38.2% Fibonacci correction level for the decline from 61.64 to 37.73, therefore, we are waiting for resuming the main bearish trend after the last temporary bullish correction.

Stochastic loses its positive momentum clearly to move near the overbought levels and supports the expectations of resuming the bearish trend, and the price needs to break 43.37 level to confirm the extension of the bearish trend towards 39.00 then 37.75 levels.

Expected trading range for today is between 43.00 support and 48.00 resistance.

Expected trend for today: Bearish