FX.co ★ Sign | CL/Crude Oil

Forecast of Crude Oil Daily time frame chart outlook: The Crude Oil price displayed range movement on the daily time frame chart at the highest price level for a few days. The price went around the 26 and 50 EMA lines during the second wave of the range trading zone. The trend direction of the Crude Oil on the daily time frame chart shifted from bullish to bearish this week on Wednesday when it surpassed the 50 EMA line in a bearish direction. As a result of the power of the bears on Thursday, the price of Crude Oil broke the range zone's 80.84 support level and formed a robust bearish engulfing candle. Although the bears appear to be in command of the market, the price of Crude Oil is expected to test the next support level, which is 76.00, shortly.

Weekly time frame chart outlook: A few weeks ago, the weekly time frame chart showed that the price of Crude Oil had crossed over the moving average lines. At that point, I had anticipated a sharp price increase, but it only lasted a few weeks. Four weeks ago, the price of Crude Oil hit the 87.01 swing resistance level. After that, it began to move bearishly, and at the time, I believed that Crude Oil doing the price adjustment. However this week, I was mistaken as the price dropped due to massive bear momentum, and on the weekly time frame chart, Crude Oil formed a robust bearish engulfing candle and crossed the moving average lines in a bearish direction. Since bears are in power and the trend is bearish, the Crude Oil price is going to test those two support levels, which I've indicated in the diagram attached.