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Today, we focus on the bullish reversal above the 20-Day MA and why it is stronger than if below it. A bullish reversal following a minor retracement to the 38.2% Fibonacci level is bolstered by support around the 20-Day MA. This line, which previously represented trend resistance, now serves as a crucial support level. A rally from this week’s lows would indicate strength in the market, especially compared to a bullish reversal at a lower price level.
In the energy market, a significant signal to watch for is a rise above the 79.00 level in crude oil prices. This will trigger a bullish signal, with further confirmation on a rally above Wednesday’s high of 79.22. The next major milestone is the trend high and weekly high at 80.33, followed by the 50-Day MA at 79.82. Our chart analysis shows crude oil price sandwiched between resistance around the 50-Day MA and support near the 20-Day MA.
Additionally, crude oil is potentially on the verge of an upside breakout from a large symmetrical triangle formation. The technical setup suggests a likely test of resistance around the top downtrend line, estimated at 82.70. However, keep an eye on the 78.6% Fibonacci retracement level, as it may narrow the price range by the time crude reaches the top line.
Looking ahead, there is a measured move upside target of 84.21 for crude oil. If achieved, this would put crude about 16.5% above the recent swing low and above the downtrend line. Many recent rallies have seen an increase of 15.4% to 30%, making 84.21 a minimum target to watch out for.
For a comprehensive look at today’s economic events and how they may impact the market, don’t forget to check out our economic calendar. At Extreme Investor Network, we strive to provide you with the latest insights and analysis to help you make informed decisions in the stock market. Stay tuned for more valuable information to guide you on your investment journey.