Price of Crude Oil Will Likely Recover Gains Higher if Resistance Is Broken.

Key Take-Aways

  • The $76.50 area is a point of resistance for the price of crude oil.
  • On the 4-hours chart, a connecting negative trend line is forming with resistance close to $76.10.
  • Over $1,850, the gold price is consolidating its losses.
  • Below the 1.0750 support, the EUR/USD’s drop deepened.

Technical Analysis of Crude Oil

From the $82.40 resistance against the US Dollar, the price of crude oil began a sharp drop. Price fell down the $78.00 support level and entered a bearish zone.

On the XTI/USD 4-hours chart, the price fluctuated below a significant positive trend line. Even the $76.50 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average were breached by the settlement price.

Finally, near the $72.00 support, the bulls emerged. Before the price began an upward reversal, a low was created around $72.14.

The price is encountering resistance upward close to the $76,000 area. The $76.50 area represents the next significant resistance. Another steady rise toward $78 or even $80 could be possible with a clear break above the $76.50 resistance.

If not, the cost could return to $76. Near the $74 region, an immediate support is now developing. Near the $73.50 mark, the next significant support is located. The $72.40 support area may need to be tested in the upcoming days if there are any additional losses.

Looking at the price of gold, the bulls are attempting to defend the $1,850 support area and may be planning a recovery wave in the near future.

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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.