It looks like the rally in oil might be over as the black gold is down for three days, losing more than 6% since Monday’s open and trading below the important 70 USD level.

Oil seems to be heading toward the major medium-term uptrend, currently near 68 USD. This trend line has been tested three times in the previous months, and it has already sent the commodity higher.

If that support fails to hold, it could mean the medium-term uptrend might be over. So the next target for bears would be at 66 USD, or possibly the 62 USD zone. 

Alternatively, if the mentioned trend line will be defended, the first strong resistance might be expected near the psychological level of 70 USD. 

Another selling area could be at 70.70 USD.

For the near future, the key development will be at the 68 USD support, for if bears push oil below that support, it could lead to a trend reversal.

Source: https://www.axiory.com/technical-analysis/is-oil-topping-at-these-levels

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About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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