Trading Crude Oil using Bollinger Bands and RSI
Crude Oil has reached an important levels. The prices are hovering around 4035, this level has three important pivot points, the Fibonacci 61.8% levels, swing lows of the former trough and middle Bollinger band. All the levels are marked on the charts. Notice RSI is moving towards 60 levels. This is a minor trend trading method setup.
Two scenarios can emerge from the current setup: First – Bullish – If crude manages to move above 4065 levels and stays there, then probably 4150 & 4290 is possible, it will a sign of trend continuation and oil may carry its move up.
Bearish – The prices if fail to move up above 4035 and a move below 3880 will open doors for more deeper correction levels may correct further to downwards and 3600 may be re tested.
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