July 24 , 2018
From past couple of days crude oil making an attempt to upside but due to lack of bullish momentum it is limited to $70 level and now again turned back to downside with strong selling pressure. Crude oil is failure to hold the price above $69 level as bulls seems as weak and bears seems as strong. Yesterday in the morning session the bulls were leading and heading towards the peak of the day but in the last trading hours it slipped to $68.20 level.
From a fundamental perspective, an escalation in tensions between the US and Iran could boost prices further or limit the downside. Today, Indian’s oil minister mentioned that Iran became the second largest supplier to the Indian public sector, surpassing Saudi Arabia and showed how important is becoming Iran in the oil market. In the US, API inventory data will be released today.
As we have mentioned in our last couple of reports that in the crude oil , bears have taken the charge, we also mentioned to sell this commodity and we are hoping that readers have made smart profit from this profitable move. A hanging man candlestick below the moving average line is supporting the bearish sentiments. Well odds are in favor of bears and intraday bias remains bearish in the crude oil. We will get further bearish confirmation below $67 level as an uptrend line is also lying from intermediate term point of view. A valid breakout of this line will give the bearish confirmation.
The $66 is the immediate support level followed by $63 whereas $70 is immediate resistance followed by $73 level. A divergence on the RSI indicator is also supporting the bearish momentum. MACD indicator is also supporting the bearish momentum and RSI is supporting the bears from overbought territory.