Price of Crude Oil Declines, Major Support Holds Strong

Key Take-Aways

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.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.