Crude: Long Term Outlook Bullish
Shiv Kumar | Dec 06, 2016 06:05AM ET
Long term outlook is definitely bullish for crude oil, but right now it looks like it's in corrective mode. Here is the hourly chart of crude oil. It seems like it may develop a small head and shoulders pattern if it fails to move above 51.84 - 52 and breaks the horizontal support line just below 50.95 (neck line for so called H&S). However, if it fails to break below this support of 50.90 (so called neck line) then the same pattern will act like double bottom. Line in the sand is 50.90
In case of a break below 50.90, we can see 50.20, followed by 49.70 and 49.20, whereas if it fails to break below 50.90 then we can see one more leg up towards 52 followed by 52.40. Any sustained move above 52.40 will take it to 53.40 and 53.80, respectively. Selling below 50.90 is preferred.
Resistance: 51.80/52.40
Support: 50.90/49.70
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