Micro Crude Oil Futures (MCL1!), H4 Potential For Bearish Drop

43268 micro crude oil futures mcl1 h4 potential for bearish drop

Type:

Bearish Momentum

Key Levels:

Resistance: 98.38

Pivot: 95.18

Support: 90.69

Preferred Case:

On the H4, with price moving below the ichimoku cloud and within the descending channel , we have a bearish bias that price will drop to the pivot at 95.18 where the overlap support is. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 90.69 in line with swing low support and 78.6% fibonacci projection .

Alternative Scenario:

Alternatively, price may rise to the 1st resistance at 98.38 where the pullback resistance, 78.6% fibonacci projection and 50% fibonacci retracement are.

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.

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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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Natural Gas Futures ( NG1! ), H4 Potential For Bullish Rise

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