The bullish trend line drawn from the low 3rd October at $51.05 shows promising strength in crude oil prices. The oil bulls have managed to push the crude index higher in the global market. However, rejection of the major resistance at $57.80 indicates bearish correction might take place soon in the crude oil price. A free fall in the crude index from $57.80 might target the support at $54.80.If the bulls manage to regain control from trend support, we might see a strong bounce in crude price. However, the corrective motive in the crude index will be invalid, if we manage to break above the resistance at $57.80.
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The crude oil price is most likely to fall in the upcoming day before the crude oil bulls get fueled up. However, the daily closing of the crude oil price below the trend line support at $54.80 might result in further downfall. The immediate target would be the critical support level at $51.45 which is also the low of 9th October. On the contrary, a strong push from the buyers from the current price level ($56.40) or trend line support ($54.80), might challenge the major resistance at $63.04 mark, high of 16th September. Considering the technical parameters, it’s safe to assume a bullish tone in crude index.Download our latest quarterly market outlook for our longer-term trade ideas.
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