Crude could ascend although correction is inevitable

Crude oil traded near $73 a barrel after falling yesterday as an increase in U.S. jobless claims raised concern fuel consumption may be slow to recover and a stronger dollar reduced demand for commodities.

Crude oil traded near $73 a barrel after falling yesterday as an increase in U.S. jobless claims raised concern fuel consumption may be slow to recover and a stronger dollar reduced demand for commodities. Oil had its biggest drop in six months yesterday as the dollar climbed to the highest level against the euro since May. U.S. equities dropped after more Americans filed claims for unemployment insurance last week.

Trading Tactics

Buy Crude Oil on a bounce of previous support level.

The buying point is at 73.32; Fibonacci 50% is the take profit at 76.10; second Fibonacci 50% is the stop loss at 71.00

The selling point is at 70.80; previous support is the take profit at 68.60; previous resistance is the stop loss at 72.50

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice histogram MACD gives us divergences; RSI (Relative Strength Index) bounced on 30% level; Momentum is in a bullish direction; Stochastic gives us a neutral signal.

Technical: crude oil fails to breaks the previous support downwards and bounced back upwards. A move back higher could set up a test of 76.10

The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.

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