May 28, 2018
No one has expected that crude oil will fall technically when it was trading above all the major and minor EMA lines i.e. above $70 level. But we have already written in our previous report that crude oil is driven by geopolitical news and anything is possible well from last week it started to tumbled down to presently hovering at $65.78 level as Saudi Arabia and Russia are considering rising up production in order to pay off for the sharp decline output from Venezuela and potentially also Iran which is at risk of sanctions from the United States. Investors are worried that the production cut agreement between OPEC and non-OPEC members might come to an end.
Two big bearish marabuzo candlesticks has been formed on the daily technical chart which is generating bearish sentiments and indicates that it may fall down further. The way bears has changed the mindset of traders and investors it seems like they are approaching the $60 level at downside. A bearish crossover on MACD indicator is favoring the bears and RSI twisted back to south side is also validating this downfall. Our intraday bias remains bearish as long as $70 level remains undamaged.
Pair is trading below all the major and minor EMA lines which is providing bullish signal. The $70 level is key resistance level followed by $73 whereas $60 is key support level followed by $62 level.