Confirmation of a crude oil price update – closing reversal top could trigger a 2-3 day correction

Spark Global Limited Reports:

U.S. West Texas Intermediate crude futures opened lower on Thursday, reversing to close at the previous session’s high. This chart pattern does not change the main trend to downtrend, but if confirmed, it could signal the start of a 2-3 day counter trend selloff.
WTI futures for December delivery were trading at $76.64 at 13:34 GMT Thursday, down 42 cents, or -0.55%.
Oil prices fell on Wednesday after an unexpected rise in US crude inventories raised concerns about demand after prices hit multi-year highs.
The U.S. Energy Information Administration said U.S. crude oil inventories rose 2.3 million barrels last week, below an estimate of 418,000 barrels. Gasoline stocks also rose, while distillate stocks fell slightly.
Technical analysis of daily volatility chart
According to the daily volatility chart, the main trend is up, but with Wednesday’s closing reversal top in place, momentum may be ready to turn to the downside.
A trade above $76.48 would confirm the closing reversal top and signal the start of a 2-3 day correction.
A break above $79.39 would overturn the closing reversal top and signal a resumption of the rally. Selling at $72.82 will change the main trend to downtrend.
The price range is $72.82 to $79.39. Its 50% level or key at $76.11 is the first downside target.
The short-term price range is $69.05 to $79.39. Its retracement range of $74.22 to $73.00 is the main downside target area.
The main range is $61.11 to $79.39. If the main trend turns down, the sell-off will continue into its retracement at $70.25 to $68.09.

 

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