Today Crude Oil Market Update

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Today Crude Oil Market Updat

CRUDE OIL SENTIMENT OUTLOOK – BULLISH

The IGCS gauge shows that about 70% of retail traders are net-long crude oil. Since most traders are net-long, this suggests that prices may continue falling. However, upside exposure has decreased by 5.94% and 10.51% over a daily and weekly basis respectively. With that in mind, the combination of overall and recent changes in positioning are hinting that crude oil may soon reverse higher.

TECHNICAL ANALYSIS

Crude oil prices remain in a near-term downtrend since prices peaked in October. A bearish ‘Death Cross’ remains in play between the 20- and 50-day SMAs, offering a downward technical bias. This is as prices consolidate around the 200-day line. Resuming the downtrend entails clearing the 65.10 – 66.39 support zone, exposing the August low at 61.76. On the flip side, pushing above the 20-day SMA and the midpoint of the Fibonacci retracement – at 73.57 – could open the door to a reversal higher.

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