May 31, 2018
By looking at the daily technical chart we can see many wipsaws, well no doubt crude oil is driven by geopolitical factors but one question should be in the mind of traders that which side we should sit i.e. Buy or Sell. Well OPEC (Organization of the Petroleum Exporting Countries) says that the output agreement is set to continue until the end of 2018.
In the first picture crude oil was making higher highs and higher lows due to Venuzuela issue at that time everyone was shouting that buy ! buy !.But then due to high supply it slipped to $65.77 from $72.23 and presently crude oil found support of an uptrend line on daily as well as weekly chart. Well from long term point of view an uptrend line is sill valid and unbreached which indicates that the current downfall was not a trend reversal it was just a correction and second opportunity to buy again who have missed earlier.
Odds are in favor of bulls so one should keep bias as bullish on the crude oil as long as $65 level remains intact. A bullish harami pattern followed by bullish marabuzo candlestick is negating the downside side.$65 is the immediate support level followed by $60 whereas $73 is immediate resistance followed by $78 level. MACD indicator and RSI is supporting the bulls from positive territory.
Traders and investors are advised that be alert because if bears are able to took it below $65 level then they will show their full strength and it will fall further.