Crude oil suffers sharp losses – Analysis - 18-10-2018

Crude oil price confirmed breaking 70.66 level yesterday and rallied downwards strongly to reach the thresholds of the extended target at 69.19, which represents 61.8% Fibonacci correction level for the rise measured from 64.43 to 76.88, which hints the importance of this level to detect the next price destiny, as breaking it will push the price to suffer more losses that reach 66.85 as a next station.

The EMA50 forms negative pressure that supports more decline, while stochastic provides positive signals that might assist to protect the price from suffering more losses, noting that breaching 70.66 will stop the current negative pressure and push the price to recover.

Therefore, we prefer staying aside temporarily until we get clearer confirmation signal for the next trend, which we will get through breaching 70.66 resistance or breaking 69.19 support.

Expected trading range for today is between 68.00 support and 71.50 resistance.

Expected trend for today: Depends on the above mentioned levels