There have been formation of a “value area” on the crude oil chart. The area have a gravel stone doji, a hanging man and a bear sash candle. Also the RSI is over extended above 60 – 70 levels, all these facts does not rule out a correction in the oil. Oil may correct till 4300 levels. A rebound from these levels will indicate strength in the commodity, fresh 52 week highs are expected till 4700 levels.
However a move below 4300 will call for a reconsideration in the analysis. As of now 4300 holds a good support zone for the oil.
Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA