Crude oil is trading sharply above its upward trend on a 4 hour time frame. This confirms that the upward trend is robust and the bias remains towards the upside as long as the price stays above this trend line.
The crude price is testing the 50 day moving average which is shown in the yellow colour and if the price finds its support from this, it will confirm further confirm the above argument. However, if the price breaks below the 50 day moving but still remain above the 100 day moving average which is in red colour, this will reflect that the bulls are losing their control of the price. It is also important to pay attention to the most recent consolidation pattern and the price has been hovering within this rectangular pattern.
The RSI and the MACD are losing clear sign of divergence in relation to the price action which reflects that while the price has been making the higher highs, the price hasn’t confirm this.
56.95-55.85 Support Zone
61.61-62.50 Resistance Zone