For sometime now we’ve seen the oil maintain a strong and consistent bullish run. The oil and been trending bullishly since the begin of this year. Just a few days ago we saw the oil trade at its higher high set at level 67.71 before pulling back bearish. Because the oil retraces after hitting higher high . We ask how far will price drop?
In the chart you will see that price currently trades at level 63.64 . This level is set to be our Support/resistance level as price previously to break past the level. Because price trades here will it find support before returning bullishly ? This level could prove to be important as it could tell us where price is headed.
If price does manage to break past this level, then we could see level 61.8.3 being exposed. Possibilities are price could probably find support at this level. Thus this could be a cheaper entry to trade the pair in its trend direction , which is bullish.
Our analysts believe that the oil retraces due to economics events currently occurring in Texas which happens to affect it movements whether bullish or bearish.
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