Price of Crude Oil Declines, Major Support Holds Strong
From well above $90, the price of crude oil began a new drop.
On the 4-hours chart, a significant negative trend line is developing with resistance close to $87.20.
Following a significant surge above $1,750, the price of gold entered a phase of consolidation.
If the price of bitcoin doesn’t surpass $17,500, it could continue to decline.
Technical Analysis of Crude Oil
From the $93.50 area against the US Dollar, the price of crude oil started to decrease again. Price movement accelerated and moved below the $90.00 support level.
A break below the $88.80 support area was seen on the XTI/USD 4-hours chart. Even lower than the $88.00 mark, the red 4-hour 100 simple moving average, and the 200 simple moving average, the price settled (green, 4-hours).
With an immediate support area close to the $84.00 region, the bears appear to be in control. The area around $82.65 is the next significant support. If there are any additional losses, the $80.00 support level may need to be tested in the ensuing days.
On the plus side, the price may encounter sellers close to the $86.50 region. The price may challenge the 100 simple moving average above the next significant resistance, which is located near $87.00 and a connecting bearish trend line (red, 4-hours).
A clear break over the $88.80 barrier and the 100 simple moving average (red, 4-hours) could pave the way for a gradual rise in the following sessions.
Looking at the price of gold, it continued to rise steadily above the $1,750 and $1,760 resistance levels. Below $1,800, it is currently consolidating gains.
Economic News To Trade Today
US initial jobless claims are expected to be 225K, down from the previous 225K.
US Housing Starts for October 2022 (MoM): 1.410M forecast, up from 1.439M in the previous month.
Author: Amogo Solomon
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