Crude Oil Ready for Pullback?

Crude Oil has seen a nice rally from its April lows, but it will it continue? Let’s take a look at the continuation chart. Prices are currently trading inside a large volume @ price cluster between 51.00 and 57.40. This cluster formed during the downwards move off the October 2018 high when it traded sideways from December 2018 until February 2020. This could prove to be an area of stiff resistance. Friday saw the first sign of weakness since entering this zone on January 7th by forming a bearish engulfing candle. This also formed near January’s monthly R2 pivot point. Prices are also a bit overextended compared to its 34 EMA wave. I think we could see a correction back into this area between 47.30 and 49.10. This area also contains another volume @ price cluster that could provide further support. Let’s watch how the next couple of weeks unfold.

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