$CL Crude oil: Internationally, the energy market is being influenced by both geopolitical developments and expectations for global demand. Crude oil saw a sharp decline earlier, and investors at lower levels are beginning to look for opportunities to bet on a rebound. Market sentiment is currently cautious as traders await the nonfarm payrolls data to help assess the Federal Reserve’s next policy moves, which will indirectly affect the valuation of commodities.
Looking at the chart, the 4-hour trend had been falling steadily from its previous high. It found support and stabilized after hitting a low of 86.62, then staged a corrective rebound, with prices gradually moving above the short-term moving averages. This is a recovery after a steep decline, and considerable resistance remains overhead. The 1-hour chart shows a more nuanced pattern, with successive higher lows and signs of short-term buying support. However, at this stage, this can only be described as a rebound; it is too early to call it a trend reversal.
Many traders can easily fall into a trap here: seeing several consecutive bullish candles and immediately deciding that a new uptrend has begun, then rushing to chase the rally. This is currently a recovery rebound after a decline, with heavy resistance overhead. Avoid aggressively chasing prices; wait for a pullback to support before considering an entry, and pay close attention to the market impact of the nonfarm payrolls data.
Friday morning crude oil trading plan: Sell short near 93.5, with a target of 86.5.
Looking at the chart, the 4-hour trend had been falling steadily from its previous high. It found support and stabilized after hitting a low of 86.62, then staged a corrective rebound, with prices gradually moving above the short-term moving averages. This is a recovery after a steep decline, and considerable resistance remains overhead. The 1-hour chart shows a more nuanced pattern, with successive higher lows and signs of short-term buying support. However, at this stage, this can only be described as a rebound; it is too early to call it a trend reversal.
Many traders can easily fall into a trap here: seeing several consecutive bullish candles and immediately deciding that a new uptrend has begun, then rushing to chase the rally. This is currently a recovery rebound after a decline, with heavy resistance overhead. Avoid aggressively chasing prices; wait for a pullback to support before considering an entry, and pay close attention to the market impact of the nonfarm payrolls data.
Friday morning crude oil trading plan: Sell short near 93.5, with a target of 86.5.
