Expected Scenario
Crude oil’s recent trades are confined within a bearish pennant pattern, suggesting further declines ahead. To activate the negative effect of this pattern, the price needs to break below $73.15, which would signal a continuation of the main bearish trend with the next target set at $71.35.
Therefore, we continue to suggest a bearish trend for the upcoming period, reinforced by the negative pressure from the EMA50. However, if the price breaches $73.90, it would halt the expected decline and potentially push the price up to test the key resistance at $75.25 before any further attempt to decline.
Expected Trading Range
Support: $71.60
Resistance: $74.60
Trend Forecast: Bearish
In summary, crude oil is expected to continue its bearish trend towards $71.35, provided it breaks below $73.15. A breach of $73.90, however, would signal a potential shift towards testing higher resistance levels at $75.25.
