Welcome to Extreme Investor Network! Today, we are diving into the latest trends in the stock market, specifically focusing on crude oil prices and potential trading opportunities.
Crude oil has recently reached a four-day high, indicating a strong upward trend. As the price continues to climb, it is trading above the four-day high of 69.52 and looks poised to reach the 38.2% Fibonacci retracement level at 70.65. This level also aligns closely with the five-day high of 70.71, making it a key area to watch for potential resistance.
As we analyze the market further, we see that the 50% retracement level lies at the bottom of a triangle pattern, with resistance starting around the 72.19 to 72.24 range. This sets up a price zone to monitor for resistance, extending up to the 61.8% Fibonacci retracement level at 73.74. Within this zone, the 20-Day MA at 72.98 and two trendlines intersect, adding additional layers of potential resistance.
Looking ahead, we anticipate an eventual test of support at the long-term downtrend line for crude oil. This line has been a crucial support area over the past 33 months, making it a significant point of interest for traders. Indicators suggest possible support levels around 63.67 and 63.30, marked by a prior swing low and a target from a falling ABCD pattern extension.
As we track these developments, it is essential to stay informed and vigilant in our trading strategies. By keeping a close eye on key price levels and trend patterns, investors can position themselves for success in the ever-changing stock market landscape.
For more expert insights and analysis on stock market trends, trading strategies, and Wall Street developments, stay tuned to Extreme Investor Network. Happy investing!