Crude oil has traveled from the lower 40’s up to 50 and back again in the last two months. How can we know which way, or when, the next big move in crude is upon us?
The zones of support and resistance, as defined by the volume-at-price profiles, are the key.
There is resistance established at 50.91 – 52.91. A move above this zone would be very bullish and suggest extension into 56.51 and/or 58.60 – 60.80.
Alternatively, a breach of support at 41.64 – 43.72 would target a retest of 37.75 and potentially lower lows.
While between these zones, traders that fade the extremes, betting on prices continuing to traverse this area are likely to be the winners until an eventual break occurs.
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