FX.co ★ CL/Crude Oil

Crude Oil Price Movement Analysis: We are currently analyzing the trends in crude oil prices. The declines seen last Thursday and Friday occurred within an ongoing downtrend. These declines are likely a result of the escalation of conflict in the Middle East. If other oil-producing countries such as Iran and Iraq become involved in hostilities, crude oil prices could rise significantly. While such a possibility is unlikely at this time, the recent hesitant rises suggest a possible reversal of the current downtrend. The opening price is expected to reach 94.38-94.52, after which it is expected to decline further. A price below 91.28 would disqualify the bullish scenario. A correction to around 92.38 is acceptable, but a decline below that level is undesirable. Looking at the daily chart, it is clear that crude oil prices were likely within a descending price channel. The rebounds seen from the lower boundary of this channel on Thursday and Friday suggest that buyers have initiated an upward corrective wave. The initial daily upward wave suggests that the rise may continue to the 98.38-100.38 level until it breaks through the upper boundary of the descending channel. Examining the 30-minute chart of WTI crude oil reveals that the previous descending price channel is indeed valid, and a new ascending channel has emerged in crude oil trading.

Friday's trading closed at 93.68, with a rebound from the upper limit of the channel, increasing the likelihood of further declines aimed at a downward correction to the lower limit of the channel (expected to be around 92.38). We recommend buying WTI crude oil at this level with an open or limit buy order. As shown on the daily chart, the emergence of an ascending corrective wave makes it likely that buyers will prevent a decline below 92.38. This means there are safe-haven buying opportunities at the 92.38, 92.88, and 93.38 levels. Building a network of pending buy orders is a strategic approach that increases the likelihood that some of those orders will be executed.