Light crude reveals descending pattern

Source: Dukascopy Bank SA


The price for United States light crude oil pierced the late 2022 high level and then failed to reach above the $95.00 mark per barrel. Afterwards, a sharp decline started that was only slowed down by a retracement, which was caused by the start of war in the Middle East. Although, the recovery was short lived, as the price did not reach above $90.00 and the decline resumed.

Most recently, it was spotted that the broader autumn decline has been occurring in a channel down pattern. The support line of the channel was touched and acted as support in mid-November, which confirms the pattern. A pattern is confirmed once a financial instrument bounces off the resistance and support line twice. One can observe how it has happened on the daily candle chart of the price for light crude.

In the near term future, a potential recovery of the commodity price is set to face the resistance of the 200-day simple moving average near 79.00 and the 80.00 mark. Most importantly note the resistance of the upper trend line of the channel. Moreover, it is expected that the 50-day simple moving average would soon strengthen the trend line's resistance.

On the other hand, a resumption of the decline is set to look for support in the 75.00 and 70.00 levels, prior to the price reaching the 63.60/65.70 range.
Back to articles

Actual Topics

Fri, 24 Nov 2023 14:03:00 GMT

EUR/JPY surge pierces resistance line

The EUR/JPY has been in a major scale channel up pattern since mid-2021. The rate has continued in the pattern higher, as since the last review it broke the resistance of the 158.00 and 160.00 levels. Most recently, the pair suddenly pierced the upper trend line of the pattern, before returning back below the trend line and resuming to

Thu, 23 Nov 2023 16:08:12 GMT

Japanese stocks test high levels

After finding support in the 30,400.00/30,600.00 range, the Japanese stock index has ascended to the early summer high levels and the 34,000.00 mark. The future outlook depends on whether this level holds. A move above 34,000.00 is set to result in the index booking new all time high levels. Watch out for round levels that could impact the index. However, a

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.