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Crude Oil Breaks Below Support at $70

December 2, 2021

  • Crude oil price started a downside correction below $75.00.
  • Bearish trend line has formed resistance near $70.20.

After testing resistance near $80.00, the Crude Oil, US Dollar price started a fresh decline. The price broke below the $75.00 support level to continue bearish.

XTI/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the XTI/USD price traded below the $72.00 support level, the 100-MA (red) and the 200-MA (blue). The price broke below the $70.00 support level before forming a low near $65.00. The price recovered above the $68.00 level before taking a pause.

For the pair to turn bullish, it will first need to test resistance near the $69.50 and $70.00 levels. There is also a key bearish trend line forming with resistance near $70.20. This is also close to the 50% Fibonacci retracement level of the downward move from the swing high of $73.52 to the swing low of $65.00. A break above the $70.00 and $70.20 levels could start a steady increase towards the $73.50 level.

If the price continues bearish, the first support level it will test is near $67.00. Below this there is further support near $66.50. A break here could see momentum take the price down as far as the $65.00 support level.

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