By analyzing the daily chart we can see that bulls are following the tortoise move and there is saying that slow and steady wins the race, same thing is going on in the crude oil also as we can see that bulls are heading north side but the momentum is very slow. Overall it has bottomed out from $44 level which is providing us bullish signal and the way bulls are reacting on the chart it seems like they are approaching the $60 in near term.
As we have mentioned in our previous report that bulls are heading towards $60 when it was trading at $52 level and we anticipated perfectly right levels as today it is trading around $59.12 level. Well $60 is a psychological level a daily closing above this level will open the way towards the $62 and $64 in near term. I hope our readers must have made handsome profit from this pre anticipated move.
From technical prospective we can see that a bullish marabuzo candlestick which is providing us bullish signal is generating bullish signal. Crude oil is trading at 5 month’s fresh high which is a positive sign for the bulls. From the starting of the year 2019 bulls are doing their well pull the crude oil from $44 level to $59.12 level. At the end of December 2018 everyone was shouting that crude will fall and it will go at $38 to $35 but we mentioned in our report that ‘It’s time to accumulate the crude oil’ add further long position on every hike on behalf of profit booking. Odds are in favor of bulls and our daily bias remains bullish on the crude oil.
A short term uptrend line is also lying on the chart from where bulls are finding support to move up. The bulls are making successively higher highs and higher lows and rising up by taking the support of a short term uptrend line which is providing strength to the bulls. Every uptrend is followed by some correction which counted as healthy sign for the trend, same thing we are watching in the crude oil. The recent correction was the second opportunity to buy again the crude oil.
Presently bulls has turned up and providing daily closing above the major & minor EMA lines, which is a recent development on the chart. From technical prospective we can see that it has given us valid breakout of the downtrend line at the time of beginning of New Year. The RSI is also favoring the bulls from positive territory and a bullish crossover of MACD along with bullish divergence is supporting the bulls however, some correction can’t be ruled out. The $62 level can be considered as resistance level followed by $64 level whereas $57 level can be taken as support level followed by $55 level which is a strong support level for the time being.