Technical Expectations for CRUDE OIL behavior (explanation)
For the Moment, the volumes are weak comparing to previous ones. the red inclined line is a strong resistance which began since 2008, the horizontal yellow line is a support which serves for 16 years now (since 2004). Now there are 2 plans:
- If the market breaks (or tests then breaks as mentioned in the chart) the strong red resistance, the prices may fluctuate between the horizontal upper dotted line and the yellow support, since it was an ancient trading range -> see the green arrows
- If the market fails to break the strong red resistance, there is no other choice than going down, breaking the yellow support, and fluctuate between the below, dotted line and the yellow support to join the ancient range highlighted in the chart -> see the red arrows (the breaking of the yellow support needs to be strong)
Let's see how it would react with the mentioned lines.
- If the market breaks (or tests then breaks as mentioned in the chart) the strong red resistance, the prices may fluctuate between the horizontal upper dotted line and the yellow support, since it was an ancient trading range -> see the green arrows
- If the market fails to break the strong red resistance, there is no other choice than going down, breaking the yellow support, and fluctuate between the below, dotted line and the yellow support to join the ancient range highlighted in the chart -> see the red arrows (the breaking of the yellow support needs to be strong)
Let's see how it would react with the mentioned lines.