The overall picture on the graph clearly indicates the presence of a powerful upward movement. From the beginning of February 2016 the price has increased by almost $25 per barrel. Now we see a small downward correction, but the probability of the continuation of the trend movement is still very high and a deal for buy at this stage is very relevant.
Current Daily Chart
The last four bearish candles are telling in regard to the suspension of the growth and the beginning of a correction.
To open short positions for this instrument right now is extremely dangerous because the continuation of the upward movement for oil could resume soon.
On the graph we can see the intersection of several important support levels. The first one is support at 47.70 which was resistance earlier and now appears as a serious obstacle while moving down. The second one is the trend line, also at the level of 47.70. The intersection of these levels constitutes a serious reason for us to think about resuming movement to the top.
The Next Few Days
We recommend opening a deal to buy with a rebound from the resistance level at 47.70 and upon receiving a confirmation. Stop Loss orders should stand below the minimum 46.60, while Take Profit orders can be placed slightly below the resistance level at 52.80.
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