Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Crude Oil Technical Outlook: Rapidly Approaching Confluent Support

Crude Oil Technical Outlook: Rapidly Approaching Confluent Support

Paul Robinson, Strategist

Oil Technical Outlook

  • Crude oil declining towards big confluent support
  • Relief bounce at the least may be in store
Oil Forecast
Oil Forecast
Recommended by Paul Robinson
Check out the Q3 Crude Oil Forecast
Get My Guide

Crude Oil Technical Outlook: Rapidly Approaching Support

Since topping out around long-term resistance near the 76-line crude oil has been nothing but weak. This has an area of confluent support in focus not far below. The trend-line off the massive low created in the wake of the Saudi panic is in confluence with the 200-day moving average.

The two collide around the 60 mark and could at the least provide a floor for a bounce. The trend since the low has obviously been up, and perhaps a low gets put in that leads to another leg higher. But even if that isn’t the case, proper price action may offer traders an opportunity to play for a bounce.

What I will be watching for on this end is volatility around support that hints at an exhaustion in selling. A sharp reversal day could give such indication. The low created during such an event would be viewed as a line in the sand.

Longer-term players who are bullish may view this as a good risk/reward spot to join the trend higher, while short-term traders, as suggested above, could look to play an oversold bounce with a backstop. A break through trend support.

Top Trading Opportunities in 3Q
Top Trading Opportunities in 3Q
Recommended by Paul Robinson
Check out the top trades for this quarter!
Get My Guide

Crude Oil (CL) Daily Chart

crude oil (cl) daily chart

Crude Oil Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES