Oil: Stop and turn

Oil (CL)

The price touched the MACD line on the weekly chart. This indicator line serves as independent technical support or resistance. Also, the price met with the resistance of the red indicator line of balance. Finding the price above this line means a shift in the balance to a growth trend below it into a decline. Prerequisites are present for price reversal looking at the lower price scales.


On the daily chart, the Marlin oscillator aggressively and persistently indicates such a decrease. Since January 11, the entire increase occurred in disagreement with the indicator of this indicator, which indirectly confirms information on the speculative growth of oil in February-March. If this is indeed the case, then the estimated price reduction may be fast.


The first goal of the decline is at least 22, 25, 28 on March level of 58.20. Further, the level of 54.55 at least on March 8 and at most on December 4 are striking. Here, the price will have to compete with the MACD line. If successful, the next target opens at least on January 14 level of 50.40 and the lower limit of the range from the end of November to mid-January last year. The range is marked with a gray rectangle.


The material has been provided by InstaForex Company - www.instaforex.com