Oil’s price move in the upcoming weeks will be decisive for its overall performance in 2018. After our initial oil price target in 2018 was met recently, we published an oil price update where we mentioned that oil is not bearish, at least not from the long term perspective. Our outlook was based on the analysis of the price chart from 1982 till 2018.
This article provides our readers with another update but, this time, we will look at the price chart and its configuration for 2018. So if our recent oil price update provided oil price’s long term trend and the price levels crucial to maintain oil in the bullish zone, our chart today will zoom in to identify the price levels that could impact the performance of oil in 2018.
Before looking in the oil chart we want to remind readers of our conclusion from Crude Oil’s long term price chart:
In fact, as long as Crude oil trades above 52USD, it is still Bullish and will likely head upwards. If it breaks below 50 USD, it would be bearish and we could see the price drop towards the bottom of the channel where there is a mega support area at 40 USD.
Crude Oil’s Price Chart in 2018
In 2018, Crude oil has been slowly making lower highs and is moving in a slightly descending channel as shown below. From the chart below, we have noted the following observations:
What does all this imply specifically to forecasting the oil price?