Crude oil breaks the neckline – Technical Analysis – 10-05-2016

Crude oil price declined sharply to break the neckline of the head and shoulders’ pattern that appears on chart, which puts the price under more negative pressure that targets testing the bullish trend line at 41.80 initially, and the negative trading will extend to reach the full target of the mentioned pattern at 39.00.

The exponential moving averages 50 and 100 support the expected decline, and holding below 44.20 level is required to achieve the waited negative targets.