Crude Oil tests the moving average – Analysis - 05/02/2016

Crude oil price resumed its negative trading after attempting to breach 32.56 level yesterday, to begin testing the EMA50 that forms key support base at 31.65, and as we mentioned in our last report, the price needs to break this level to ease the mission of continuing the main bearish trend, which its next targets located at 29.00 followed by 25.48.

Therefore, our bearish overview still valid and active, might be preceded by some temporary fluctuation affected by stochastic positivity that appears clearly on the four hours’ time frame, being aware that it holding below 32.56 is key condition to continue today’s expected decline.

Expected trading range for today is between 29.00 support and 33.00 resistance.

Expected trend for today: Bearish