The recent trades of crude oil price reveal its confinement within a minor bullish channel, leading analysts to identify the formation of a bearish flag pattern on the chart. Accordingly, the breaking of the support line at 71.80 is anticipated to trigger the negative implications of this pattern, propelling the price into a continued decline on both intraday and short-term bases. The immediate downside targets are forecasted at 70.00, followed by 67.04 as subsequent negative stations.
The prevailing bearish scenario is further supported by the current negative signal provided by the stochastic indicator. It is crucial for the price to maintain a position below 73.73 to validate the expected bearish targets.
As the bearish trend scenario persists, traders are advised to remain vigilant, considering the aforementioned technical signals and price levels for potential shifts in market dynamics.
The projected trading range for today is expected to oscillate between the support at 70.60 and the resistance at 73.50. The overall trend for today is considered bearish, in line with the identified negative pattern and supporting indicators.
