May 21, 2013
- Crude oil four hour chart looks like an ascending triangle.
- Hour chart is trading above 50 Hour SMA. Crude oil bears need an hourly close below 50 Hour SMA and the up trend line shown in four hour chart for a breakdown to happen.
- Daily and Four hour chart also shows price testing crucial resistance lines.
- Nifty daily chart managed to form a bearish engulfing pattern. Price closed below 5 day High EMA and for bears there is also a negative divergence between price and RSI.
- For bulls though the up trend is still intact and the current price action is happening above crucial support levels. Supports shown in chart 2 are crucial for bears to make price week should close below 6000 levels. Sustaining above these levels will favor bulls to extend the rally.