Crude oil is showing strong bearish pressure after the Strait of Hormuz reopened, which triggered a sharp gap down in price. This move clearly reflects weak bullish momentum and increasing selling interest in the market.
On the chart, price has already broken an important support zone and is now approaching a possible retest area near the broken support. This retest zone is very important, because if sellers defend this level again, crude oil could continue moving lower.
The highlighted area around 88.50 is the key retest zone. If price rejects from this region, the next downside targets could be around Support S1 and further near the 0.618 golden ratio level at 78.75. That area is acting as the major bearish target for this setup.
On the chart, price has already broken an important support zone and is now approaching a possible retest area near the broken support. This retest zone is very important, because if sellers defend this level again, crude oil could continue moving lower.
The highlighted area around 88.50 is the key retest zone. If price rejects from this region, the next downside targets could be around Support S1 and further near the 0.618 golden ratio level at 78.75. That area is acting as the major bearish target for this setup.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.