Light Crude price is getting squeezed

Source: Dukascopy Bank SA


The price of US light crude oil did not reach above the 130.00 mark during March. Instead, the pair retraced to a support zone at 93.00/96.00. The zone acted as resistance during February trading. Afterwards, a recovery found resistance at 115.00, before starting a decline back to the support zone.

In the meantime, it was spotted on April 6th that the price is trading in a triangle pattern. Namely, the resistance line of the triangle is marked by connecting the March high levels at 130.00 and 115.00. Meanwhile, the base of the triangle is at 93.00/96.00. The pattern represents the squeeze of the price, which is occurring due to the fundamental pressure that has been put on oil in the aftermath of the start of the Russian invasion of Ukraine.

In general, it appears that the rate is set to get squeezed in between the resistance line and the support zone somewhere near 100.00 by the middle of April. A squeeze of the price is expected to result in a breaking out either up or down.

A potential surge of the price above the resistance line of the triangle is set to be slowed down by the 115.00 and 130.00 mark.

However, a decline of the commodity below the 93.00 level, might look for support in the 85.00 mark. The 85.00 level and the zone near it mark the 2021 high levels.
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