Crude oil prices recorded notable gains during the previous trading session, making an attempt to breach the $90.95 level. However, a sharp bearish reversal ensued, driving the price back to settle at the $89.36 level. Upon closer examination of the price chart, it becomes evident that the market has successfully formed a head and shoulders pattern, with its distinctive characteristics displayed in the provided image. This formation implies that breaking below the $89.36 level could serve as a catalyst for a subsequent rally towards the next designated correctional target at $87.16.
Consequently, the prevailing outlook remains bearish for the forthcoming period. It is worth noting that surpassing the $90.15 level would mitigate the existing downward pressure and potentially trigger new recovery endeavors.
Today’s projected trading range is expected to span from the support level at $87.50 to the resistance level at $90.50.
Market analysts underline the bearish sentiment surrounding crude oil prices, highlighting the importance of closely monitoring the $90.15 threshold as it may influence the market’s directional momentum.
