Crude oil price has been falling down since the high of USD147. At first, I thought it was just a correction and it will continue its up trend. I even heard a friend saying that an petroleum company forecast for the crude oil price to go up till as high as USD200. That will definitely hurt many people as the inflation can also go up as well.
How low will it go?
However, I saw it cross the 20d MA support, followed by crossing down on 50d MA support and finally it crossed the 100d MA support. It is now heading towards the 200d MA support which I estimate to be around USD110 region.
I think that will be a price to have some action and may cause a rebound.
What do you think the overall trend of crude oil price be like? Well, looking at the ADX, it is stil climbing up, the -DI is staying on top of +DI line, suggesting and down trend in action. RSI is low now and it can confirm the down trend if RSI does not rebound higher than 60 later.
If you like to enter into crude oil future, well, you should now wait for it to rebound upwards first and short at that high of the rebound. If a lower high is form, which I think it will definitely, as it is high chance won’t climb up to USD147 again in the near term, lower high will confirm the down trend of the crude oil price.
Light Crude Oil Price Sinking
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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