Though we see some weakness in prices in the near-term, the bigger picture still continues.
By Gnanasekar Thiagarajan, director, Commtrendz Research
After failing to cross the $80.49 mark made on 22nd May 2018, crude prices gave in to selling pressure on 11th July 2018. From there it has been a one way streak. Important support at $72 has been broken recently — being a culmination of two important trend line support points.
Prices are now headed towards the next important support at $67.00 levels followed by a critical support at $62.00 in the coming sessions. These are fibonacci retracement levels which typically market participants look at to identify important supports and resistances when prices are trending higher/lower.
Though we see some weakness in prices in the near-term, the bigger picture still continues to indicate bullish tendencies. Therefore, we expect prices to initially edge lower towards $64-65 range or on a extreme basis even to $60 levels and then gradually push higher again towards the recent highs at $80 and eventually towards a potential long-term technical target around $90 by the year end.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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