Crude oil has staged a recovery from the worst level of the year after the US Federal Reserve announced a sweeping set of measures to support the United States economy.
Crude oil technical analysis shows that the price is currently trading within a falling price channel on the lower time frames.
Crude oil medium-term price trend
Crude oil price analysis shows that the negative medium-term bias will remain in force while the price trades below the $54.00 level.
Crude oil has staged a recovery alongside other commodities after the US Federal Reserve announced a massive stimulus package earlier this week.
Despite the strong push higher a bearish pattern on the daily time frame continues to warn that a stepper drop below the $20.00 support level could still occur.
Medium-term dip-buyers should note that the size of the head-and-shoulders pattern warns that crude oil prices could fall towards the $5.00 support area.
Crude oil short-term price trend
Crude oil technical analysis highlights that a strong bearish short-term bias is still in place over the short term while the price trades below the $32.00 level.
The lower time frames are currently showing that a falling price channel has formed. Falling price channels are usually considered bullish reversal patterns.
A crude oil technical analysis chart on the four-hour time frame shows that the top of the pattern is found around the $27.00 level, while the bottom of the channel is found around the $15.00 level.
With this in mind, a stronger recovery towards the $32.00 level could occur if the $27.00 level is overcome.
To the downside crude oil prices could correct back to the $20.00 level if bulls fail to overcome the $27.00 level.
Crude oil technical summary
Crude oil technical analysis shows that price is currently trapped within a falling price channel over the lower time frames. Medium-term analysis is warning of a possible drop towards the $5.00 level.
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