The price of the commodity established a Double Top pattern recently, which entails rising bearish sentiment. This is a type of reversal pattern that is typically associated with the likely emergence of a new downtrend.
Moreover, the peak of the Right Top takes the form of an Evening Star pattern, which substantiates the expectations for the completion of a trend reversal in the near future.
Notice that the price of crude broke down below the 23.6 per cent Fibonacci retracement level at 64.50 recently, marking the first major step in the development of a new downtrend. The next substantial obstacle that needs to be overcome is the consolidation area (in green). It spans between the 23.6 per cent Fibonacci and the 100-day MA (in blue).
The consolidation area could prompt the emergence of a minor bullish pullback, which could reach the 50-day MA (in green) from below. Currently, the latter is positioned at the 65.17 price level. In other words, such a potential pullback encapsulates the current risks for bears.
Meanwhile, a decisive breakdown below the 100-day MA would allow the price of crude to target the next major target - the 200-day MA (in orange). At present, the latter coincides with the 38.2 per cent Fibonacci retracement level at 63.11, making it an even more prominent target.
The deepest target level for a bigger downtrend is underpinned by the 61.8 per cent Fibonacci retracement level at 60.86. The latter's close proximity to the psychologically significant support level at 60.00 makes it an even more interesting target.
Moreover, the peak of the Right Top takes the form of an Evening Star pattern, which substantiates the expectations for the completion of a trend reversal in the near future.
Notice that the price of crude broke down below the 23.6 per cent Fibonacci retracement level at 64.50 recently, marking the first major step in the development of a new downtrend. The next substantial obstacle that needs to be overcome is the consolidation area (in green). It spans between the 23.6 per cent Fibonacci and the 100-day MA (in blue).
The consolidation area could prompt the emergence of a minor bullish pullback, which could reach the 50-day MA (in green) from below. Currently, the latter is positioned at the 65.17 price level. In other words, such a potential pullback encapsulates the current risks for bears.
Meanwhile, a decisive breakdown below the 100-day MA would allow the price of crude to target the next major target - the 200-day MA (in orange). At present, the latter coincides with the 38.2 per cent Fibonacci retracement level at 63.11, making it an even more prominent target.
The deepest target level for a bigger downtrend is underpinned by the 61.8 per cent Fibonacci retracement level at 60.86. The latter's close proximity to the psychologically significant support level at 60.00 makes it an even more interesting target.
