July 17 , 2018
As we have mentioned in our previous report that crude has topped out and 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. Yesterday was too volatile session as we have witnessed complete blood bath in the whole day as we can see that bears have taken the charge as of now. Earlier it was in uptrend and from the uptrend market where bulls are controlling the game bears took it down side and it seems like bears snatched the bite from bull’s mouth.
Crude declined almost 8% in just 6 days which is a massive move from bear’s side. The slide was boosted by comments from US Treasury Secretary Steven Mnuchin. He said the administration will consider the use of waivers for countries to continue buying Iranian supplies. Due to heavy supply pressure crude oil turned back to south side or we can say that traders booked their profit.
Crude oil is falling down because supply is set to increase once again. Libyan oil supply is set to come back and export operations will be reverse to “normal levels within the next few hours. A bearish marabuzo 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 $73 is immediate resistance followed by $75 level. MACD indicator is also supporting the bearish momentum and RSI is supporting the bears from overbought territory.