Forex Trading: BCOUSD Price Is Consolidating at $70 Level, Expecting a Bearish Breakout

Forex Trading: BCOUSD Price Is Consolidating at $70 Level, Expecting a Bearish Breakout
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BCOUSD Price Analysis – May 12

Further increase in the Bears’ momentum to break down the $70 level, may lead to the Brent Crude Oil price decrease to $64 – $58 level. In case the $70 level holds uptrend movement may continue.

 

BCO/USD Market

 

Key levels:

Supply levels: $70, $79, $87
Demand levels: $64, $58, $49

 

BCOUSD Long-term trend: Bullish

Brent Crude Oil is still bullish on the long-term outlook. The Bearish momentum is gradually getting stronger on the weekly chart with the formation of more bearish candles after shooting star candle that emerged on April 22 and April 29. Last week candle was initially bearish and pushed the price below the $70 level but later during the week, the Bulls pushed up the price and the candle ended up as Doji on the $70 levels.

BCOUSD Weekly chart, May 12

The 21 periods EMA is still at the point of trying to cross over the 50 periods EMA upside. The Brent Crude Oil price is trading above the two EMAs and 21 periods EMA is below 50 periods EMA. However, the stochastic Oscillator period 14 is at $75 levels and the signal lines bending down to indicate sell signal. Further increase in the Bears’ momentum to break down the $70 level, may lead to the Brent Crude Oil price decrease to $64 – $58 level. In case the $70 level holds uptrend movement may continue.

 

BCOUSD medium-term Trend: Ranging

On the medium-term outlook, Brent Crude Oil is on the bullish movement. Since the formation of a shooting star on April 25, followed by the daily strong bearish candle the price has been ranging down towards $70 level. On May 07, the Bears pushed the price a bit below the $70 levels. The Bulls returned the price to the mark of $70. The BCOUSD price is trading in between 21 periods EMA and 50 periods EMA.

BCOUSD Daily chart, May 12

The Stochastic Oscillator period 14 is at 25 levels with the signal lines interlocked to each other and flat horizontally at the level; which indicates that the consolidation is ongoing in the BCOUSD market.

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About AzeezMustaph

Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management