The strong rally in Crude oil price halted after hitting the critical resistance at 65.64, high of 7th January 2020. The crude bulls lost their control from that level due to the geopolitical crisis between Iran and the U.S. Crude oil price sharply dropped breaching major support levels at 60.96. However, the bearish rally has come to a halt since the support at 59.36 is refueling the bulls. If the crude bulls manage to gain control from this level, the price might head towards the critical support at 60.96. A daily closing of the price above that level might target the key supply at 65.64.
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On the downside, failing to regain the bullish momentum, might push the Crude oil price towards the next support at 57.77. This level might provide strong support to the crude bulls. Any bullish price action signals might offer an excellent buying opportunity. However, the investors are advised to stay cautious since the extended drop in the crude price might be imminent.
If things intensify between U.S and Iran, we might see another sharp drop in crude price. This might even push the price towards the low of 31st October 2019 at 53.85. Considering all the parameters, its better stay in the sideline until the market gives more favorable trading opportunities.Download our latest quarterly market outlook for our longer-term trade ideas.
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