Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the stock market, trading, and all things Wall Street. Today, we are diving into the significance of potential key support zones and symmetrical triangle breakdowns in the crude oil market.
The 78.6% retracement area in crude oil is a crucial level to watch, as it coincides with the completion of a falling ABCD pattern. This pattern highlights price symmetry between the AB and CD legs, making the support zone potential significant. A decisive drop through this zone could lead to a retest of recent lows, while a bullish reversal could signal a move towards reclaiming key moving averages such as the 20-Day MA and 50-Day MA. Reclaiming the 50-Day MA is crucial for crude oil to challenge recent swing highs, with the 200-Day MA acting as a key resistance level at 77.89.
In addition, a symmetrical triangle breakdown in crude oil has been giving mixed signals since early September. The initial decline to a low of 65.65 was followed by a rally back into the triangle, potentially signaling a failed breakdown. However, crude currently trades below the lower boundary line of the pattern, indicating potential resistance. A decisive daily close above this line is needed for a bullish breakout, while failure to do so could lead to further downside momentum.
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