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Forex Trading: BCOUSD Price May Test $64 Level, In Case $70 Level Breakdown!

BCOUSD Price Analysis – May 06

Increase in the Bears’ momentum may break down the $70 level and the Brent crude Oil price may decline to $64. 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

On the long-term outlook, Brent Crude Oil is bullish. The Bulls’ momentum is getting weaker as it can be seen on the weekly chart with the formation of shooting star candle on April 22 and April 29 which indicate that the Bears are gradually coming into the market to dominate. At the opening of this week BCOUSD market, another bearish candle emerges at the $70 price level. All these bearish candles formations may be a pullback of the uptrend.

BCOUSD Weekly chart, May 06

The 21 periods EMA is trying to cross over the 50 periods EMA upside. The Brent Crude Oil price is still trading above the two EMAs and 21 periods EMA is still below 50 periods EMA. Meanwhile, Moving Average Convergence Divergence with its histogram is above the zero levels and the signal lines pointing upside to indicate a buy signal. Increase in the Bears’ momentum may break down the $70 level and the Brent crude Oil price may decline to $64. In case the $70 level holds uptrend movement may continue.

BCOUSD medium-term Trend: Bullish

On the medium-term outlook, Brent Crude Oil is on the bullish movement. The Bulls holds tight to Brent Crude Oil market. On April 25, a shooting star candle emerged which is a bearish reversal pattern. This pattern made the bearish momentum to increase and pushed the Brent Crude Oil price to $70 level. This week opened with a bearish candle that penetrated the $70 level. In case the Bears continue to increase its momentum, there is a tendency for the Brent Crude Oil price to decline to $64.

BCOUSD Daily chart, May 06

The BTC price is trading in between 21 periods EMA and 50 periods EMA. The MACD with its histogram is below the zero levels and the signal lines pointing down to indicate sell signal.

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