Crude Oil futures have been moved by a full slate of surprise news headlines regarding OPEC this past week. Perhaps the euphoria caused an exhaustion price gap this week.
And when considering that Crude futures are now registering overbought readings, it’s probably a good time for crude to recharge a bit.
As well, crude oil futures hit our last target price of 53.50. In my opinion, if traders didn’t get in on this move already, they should probably wait – initiating a new long position after a $10+ move may be tricky here. If oil prices close the week near the $50.84 – $48 price mark, we may see further downside. The following are downside price targets should we close the week below $50.84:
– Â 46.47
– Â 43.12
– Â 40.05
Note that beautiful inverse head and shoulders formation on the chart below. If crude oil breaks below the 39 dollar mark, it would invalidate the pattern.
Thanks for reading.
Twitter:Â Â @MaximusAnalysis
The author does not have a position in any of the mentioned securities at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
