Crude oil draws negative pattern – Technical Analysis – 06-05-2016

Crude oil price trades with bearish bias to approach from completing a head and shoulders’ pattern that appears on chart, the confirmation level of this pattern is located at 43.40, and breaking this level will push the price to decline towards 39.00 mainly.

Stochastic offers negative signal that supports completing the mentioned negative pattern, thus, the bearish trend will be expected for the coming period, and the price stability below 45.30 is an important condition to achieve the waited targets.