LIGHT CRUDE OIL FUTURES (CL1!), H4 Potential For Bearish Drop

43619 light crude oil futures cl1 h4 potential for bearish drop

Type:

Bearish Momentum

Key Levels:

Resistance: 104.47

Pivot: 101.56

Support: 95.17

Preferred Case:

On the H4, with price moving within a descending channel and RSI moving along a descending trendline, we have a bearish bias that price will drop from the pivot at 101.56 where the pullback resistance and 78.6% fibonacci retracement are to 1st support at 95.17 in line with pullback support and 61.8% fibonacci retracement .

Alternative Scenario:

Alternatively, price may break pivot structure and rise to the 1st resistance at 104.47 where the pullback resistance is.

Fundamentals:

Due to the uncertainty over the German gas crisis and supply constraint of oil , we have a bullish bias on oil . We’ll need to exercise caution for this setup because our fundamentals and technicals are not completely aligned.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 68% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Written by Desmond Leong

Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.


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