Crude Oil made a strong recovery after testing the recent lows near 67.50 and is now testing a major resistance zone around $80.70.
The resistance is confluent with the 23.6% Fibonacci retracement and the 50 & 200-day EMA. While the rebound has improved near-term sentiment, price is approaching a critical supply area where sellers may re-emerge.
A decisive breakout above resistance could accelerate gains, particularly if geopolitical tensions in the Middle East escalate again, but a minor correction cannot be rejected considering the technical set-up.
RSI has rebounded sharply above 70, entered the overbought zone.
RSI also forms a bearish divergence with the price, suggesting upside momentum may begin to weaken unless buyers secure a confirmed breakout above resistance.
The resistance is confluent with the 23.6% Fibonacci retracement and the 50 & 200-day EMA. While the rebound has improved near-term sentiment, price is approaching a critical supply area where sellers may re-emerge.
A decisive breakout above resistance could accelerate gains, particularly if geopolitical tensions in the Middle East escalate again, but a minor correction cannot be rejected considering the technical set-up.
RSI has rebounded sharply above 70, entered the overbought zone.
RSI also forms a bearish divergence with the price, suggesting upside momentum may begin to weaken unless buyers secure a confirmed breakout above resistance.
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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.