Oil Price In Clear Downtrend
Most commodities declined this week due to risk on sentiment after the French Elections. Oil price also declined, and it can be clearly seen in the 4-hours chart.
There was a break below a monster bullish trend line at $53.45 on the 4-hour chart, igniting a downside wave. Later, the price also moved below the 100 simple moving average (H4) at $51.90.
The most important move was below the 50% Fib retracement level of the last wave from the $47.24 low to $54.07 high.
At the moment, the price is finding support near $49.00, but it remains in a clear downtrend. There is also a bearish trend line formed on the upside with resistance at $51.40.
So, even if the price corrects higher, it could face sellers. On the downside, the next support is at $48.00.
Later today, the EIA Crude Oil stockpiles report (April 21, 2017) will be released by the Energy Information Administration, which may impact Oil prices.
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