Taking advantage of yesterday’s unexpectedly favorable transactions, the price of crude oil attempted to surpass the level of 76.10. It was unable to maintain this momentum, though, and the daily candlestick finished below the previous level. It further supported the continuance of the bearish trend scenario on an intraday basis by closing below the bullish channel’s support line. As a result, 73.80 is thought to be the next target price for crude oil.
The mission’s ability to drop is being hampered by the favorable outlook of the technical indicators at the moment. But we are still on the lookout for a bad reason that will help push the price up in order to hit the desired targets. It’s crucial to keep in mind that if the price breaks through the level of 76.10, the indicated bearish wave will come to an end and the bullish trend will resume. The price would subsequently be targeted at 78.00 and then 78.90.
The support level of 73.80 and the resistance level of 76.80 are predicted to be the boundaries of the expected trading range for today. This range shows the projected limits of how much an asset’s or security’s price will vary during the trading session. These levels are frequently used by traders and investors as a point of reference when deciding whether to purchase or sell.
The support level of 73.80 represents a price point where it is anticipated that there will be sufficient demand for the asset to prevent further price declines. It serves as a floor, giving potential buyers who anticipate a price reversal from this level a chance to buy.
On the other hand, the resistance level of 76.80 denotes a price point where it is anticipated that the asset’s supply will be too great to allow for further price growth. For traders who anticipate that the price will turn around and decrease from this level, it serves as a ceiling and presents a potential selling opportunity.
The ongoing COVID-19 epidemic, along with other issues like trade disputes and geopolitical unrest, have all contributed to the global economic slowdown, which has a detrimental impact on the stability of crude oil prices. Oil product glut and consequent price reduction are the results of decreased demand, particularly in the transportation and industrial sectors.
It is essential for traders to comprehend the expected trading range since it gives them a framework to establish their trading methods and control potential dangers. Traders can set their entry and exit points, as well as their stop-loss and take-profit levels, by detecting these crucial levels.
The projected trading range can be a helpful guide, but it’s crucial to remember that the price may still go beyond these levels due to external factors like market circumstances and unforeseen events. Traders should constantly exercise caution and adjust their tactics as necessary.
In conclusion, it is predicted that the trading range for today will lie between the 73.80 support level and the 76.80 resistance level. These levels act as a point of reference for traders, assisting them in making defensible choices and successfully managing their trading methods.