FxNews—Crude oil formed a bearish engulfing candlestick pattern after the price failed to surpass the $72.25 resistance. Meanwhile, the RSI 14 indicator signals divergence, flipping below the median line, which indicates that there could be a bearish wave on the horizon.
On the other hand, crude oil prices are above the 100-period simple moving average, suggesting a bullish primary trend. The Awesome Oscillator indicator’s recent histogram also turned red but above the signal line. This means the bull market is losing momentum.
Overall, the technical indicators suggest that while the primary trend is bullish, oil prices have the potential to dip and test the lower supply levels.
Crude Oil Technical Analysis – 7-November-2024
The immediate resistance is at the October 24 high, $72.25. From a technical standpoint, the current bearish momentum can potentially extend to $69.7 if the immediate resistance holds.
Conversely, if bulls close and stabilize the price above the immediate resistance, the bullish trend will likely be triggered again. In this scenario, the crude oil price could target $73.4.
- Support: 69.7 / 68.3
- Resistance: 72.25 / 73.4
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
