Crude oil retests the resistance level then falls – Technical Analysis – 08-11-2016
After crude oil rebounded from the support level of 45.05 during the previous trading week; oil managed to re-test the resistance level of 46.50, a level that brought negative pressure on the oil to push it to drop again during the day trades.
45.05 support level is the level that held the continuation of decline in oil, in the past September which also considered as the starting point for the bullish movement that began then to reach to the price of 53.72 in October.
It is expected that low oil prices will remain in light of the global political climate, where the results of the American elections that the world is waiting for and is expected to affect the price of oil as the United States is the largest consumer of oil in the world, as well as unrest in the Middle East and the conflict between OPEC and Iran
Generally; the stability of the current resistance 46.50 will restore the basic bearish moves for the short-term trades, which will target the support level of 45.05 initially and may exceed it, and the ability of the price to rise and hold above 46.50 resistance would open the way for the rise movement to resist higher resistance levels that expected to target 48.20 initially.