Crude oil still supported by many positive catalysts

By examining the weekly chart of Crude oil, we see how prices have stabilized above the previous breached neckline of the double bottom pattern along with bullish harmonic crab pattern.

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Adding Fibonacci retracement tool to the CD leg proves 23.6% Fibonacci of the entire downside wave from 107.50 to 42.40 has provided oil with the protection it needs, opening the door up towards 38.2% Fibonacci-scientific target of the harmonic pattern- at 67.25.

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Over daily studies, crude oil needs a breakout above 62.65 regions to affirm the bullishness, while traders are currently supported by being carried above SMA 50 and positive signs on Aroon and RSI14.

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We are bullish on Crude, softly targeting 65.00 zones, while main targets reside at 67.00 area.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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