By Anton Eljwizat – Crude Oil has been experiencing much bullish behavior in the last few days. However, there is much technical data that supports a bearish move for today. I will illustrate below that the oil may very well be heading for a reversal, and it might have the potential of reaching towards $80 in the coming days. Forex traders involved with commodities like this can take advantage of this knowledge by going short on Crude Oil now, and at a great entry price!
• Below is the 4-hour chart for crude oil by ForexYard.
• The technical indicators used are the Relative Strength Index (RSI), MACD and Williams Percent Range.
• Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling upward pressure.
• Point 2: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 3: The Williams Percent Range has peaked near at the 0 marker, which means that there may actually be a strong level of downward pressure.
Crude Oil 4- Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.