Crude Oil: Decisive Zone And Expected Future Directional Moves
Satendra Singh | Mar 18, 2017 06:41AM ET
I mentioned in my last analysis Crude Oil Seems Ready To Break First Resistance Soon that crude oil seems ready to break its first resistance level from $50.70 to $51.30.
Though, crude oil futures price started an uptrend after submission of my analysis on March 14th, 2017 07:28AM ET and touched an high of $49.59 on March 16th, 2017 (Fig. 1) but it might not even muster that much strength to broke the resistive zone; and started to move downward due to some price negate news flow which created an uncertainty (Fig. 2).
Crude oil futures price, after coming down on March 16th, 2017 seems to be getting a good support at $48.60 since then till its lat weekly closing. On analysis of the movement of crude oil futures price in 15 Minutes chart, I find that though trading amid a crucial news flow, crude oil price still have the strength to move higher (Fig. 3).
On analysis of the movement of crude oil futures price in different price zones, I find that in the daily price zone, it is still trading above 200 DMA, a good support level and have more probabilities of going upward.
I find that it will be very interesting to keep a watch on its movement for the first three trading session of the week of March 19th, 2017. Although, the direction of crude futures price in the days ahead will definitely be news dependent but I find that first of all opening price on the first trading session of the week of March 19th , 2017 and the sustenance of price above or below the opening will be an interesting levels to notice before creating a position.
On analysis I find that the crude futures price, if comes downward on the first trading session, wait and watch would be the best option first and then the next supporting level will be from $46.60 – S46.80 first and then the next strong supporting zone between $44 - $45.
I find that the level of $47.80 to $48.20 will provide a good bounce back first of all during the first two trading session on any downward move. On analysis of the movement of crude oil futures price in different time zones, I have concluded a Decisive Trading Zone for the crude oil in a daily chart for the week of March 19th, 2017 (Fig. 4) and find a move outside this Decisive Zone will define its Future Directional Moves.
Have a nice trading time.
Disclaimer: This analysis is purely based on the technical observations. I do not have any position in natural gas. One can create position in natural gas at his/her own risk.
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