Crude oil rallies right into a key resistance and backs off. What's subsequent?

Yesterday, following Trump’s tariffs pause announcement, crude oil futures rallied greater than 10% earlier than backing off a bit from a key resistance zone.

The consensus continues to be damaging in the marketplace citing Trump’s 125% tariffs hike on China and the truth that all the opposite nations nonetheless get a 10% baseline tariff.

I’d take the alternative view as a result of it exhibits that it is all about bringing down commerce limitations for others. I am not an economist, but it surely must be collectively bullish for international development and subsequently for crude oil.

On the 1 hour chart, we are able to see that the worth spiked into the important thing resistance zone across the 62.00-64.00 vary and backed off a bit, which is what typically occurs after such sturdy spikes. We now have a counter-trendline defining the present pullback. The sellers will doubtless proceed to lean on it to maintain pushing into new lows, whereas the patrons will search for a break greater to pile in for a break above the resistance and begin concentrating on the 72.00 deal with subsequent.

This text was written by Giuseppe Dellamotta at www.ubaidahsan.com.



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