Is it showing signs of bottom formation?
We are having weekly and monthly chart to review such probabilities.
On weekly chart, crude is trading in a range of approx 10$.
Upper range falls at 55$ level, while lower range is at 44$ level.
Intial range started when crude charts had a doji which then followed by a rally till 55$ level.
Charts now had a morning star pattern formation at lows established by doji.
However price flat formation is in divergence with RSI oscillator, as RSI oscillator is showing positive divergence.
However one should wait to see which way the range would break.
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On monthly chart , crude had reached near important lows established in 2009, via long legged hammer's.
Crude is also trading in between 76.4 - 88.6% retracment of previous rally.
A long term trend line also fall near $40-42 levels.
IMPORTANT LEVELS TO WATCH:
55: RESISTANCE
42, 40, 32: SUPPORT
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Weekly Chart. |
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