MCX Crude Oil: Will it Drop Below 5000 Before the Weekend?

MCX:CRUDEOIL1!   Crude Oil Futures
MCX Crude Oil: Will it Drop Below 5000 Before the Weekend?

In the wake of the COVID-19 pandemic, crude oil prices experienced significant volatility, hitting a low of 795 and reaching a peak of 9996 on March 8, 2022. Currently, the price is undergoing a retracement, approaching the key level of 50%.

Following the peak, crude oil prices began to decline, forming a parallel channel pattern. The price has been trading below this channel for over a year. Based on moving averages data, crude oil is expected to reach the support level of 5396, which is currently acting as a strong support zone. A potential reversal may occur around the "control price line" from the 0.5 level of the Fibonacci retracement.

If crude oil breaks the key retracement level and consistently closes below it, the following target levels may come into play: 5200 - 5000 - 4700.


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