Crude Oil Price Rebounds After Forming Support Near $5006 December, 2018 by Aayush Jindal in Market Analysis
- Crude oil price formed a decent support near $49.50 and $50.00 against the US dollar.
- There was a break above a major bearish trend line with resistance at $51.50 on the 4-hours chart of XTI/USD.
- The Euro Zone Services PMI in Nov 2018 increased from 53.1 to 53.4.
- Today, the US Services PMI for Nov 2018 will be released, which is forecasted to remain at 54.4.
Crude Oil Price Technical Analysis
During the past few days, there were heavy declines in crude oil price from the $60.00 swing high against the US Dollar. The price even broke the $55.00 and $54.00 support levels before buyers emerged near $50.00.
Looking at the 4-hours chart of XTI/USD, the price traded as low as $49.25 and later formed a decent support near the $49.50 and $50.00 support levels. As a result, there was an upward move and the price traded above the $51.00 and $52.00 resistances.
The price even broke a major bearish trend line with resistance at $51.50 to enter a short term bullish zone. Later, buyers pushed the price above the $54.00 level and the 50% Fib retracement level of the last decline from the $57.95 high to $49.25 low.
However, there is a strong resistance near the $54.50-55.00 zone and the 100 (red) simple moving average (4-hours). A convincing break above the $55.00 resistance is needed for a larger recovery in the near future.
On the other hand, an immediate support is near the $51.80 level, below which the price may perhaps retest the $49.50-50.00 support area.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 220K, versus 234K previous.
- US ISM Non-Manufacturing Index for Nov 2018 – Forecast 59.2, versus 60.3 previous
- US ADP Employment Change Nov 2018 – Forecast 195K, versus 227K previous.
- US Services PMI for Nov 2018 – Forecast 54.4, versus 54.4 previous.