The crude oil price is getting strong support from the bullish trend line drawn from $51.0, low of 3rd October 2019. After the breakout of the triangle pattern in the 4-hour time frame, the Crude Oil bulls are eyeing to test the resistance level at $57.97. However, the crude oil price dropped by 0.8% before the closing of the last trading week. Things were further intensified after the 1.2% drop in USO (United States Oil Fund). Considering the last week’s drop, we might experience some delay before we see a test of the resistance at $57.97. So, an imminent correction might take place in crude oil price.
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Failing to regain the bullish momentum, the bears might push the crude index towards the nearest support at $54.61. This level might refuel the crude bulls since we have plenty of supportive candles. However, a clear break of the major support level at $54.61 might lead crude price towards $51.0 mark, the low of 3rd October at. But such an extensive bearish dive might require a further drop in USO stock or significant crisis in the energy sector. On the upside, the bulls need to clear the nearest resistance at $57.97 markets before establishing a fresh bullish tone. And a clear break of that level might push the Crude price towards the $63.23 mark which is the high of 16th September 2019.Download our latest quarterly market outlook for our longer-term trade ideas.
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