The downtrend in Crude remains intact on all timeframes, says Andy Dodd, Head of Technical Research at Louis Capital Markets.
Dodd notes that the downtrend coincides with resistance at 49.9 which allows for a further rally from current levels whilst keeping that trend intact. He suggests selling any such rally with a stop/reverse on a clean break of 49.9.
His only caveat to this outlook is a bullish Hammer candle that was posted last week and which may prove to be the first indication of a move higher in that time-frame, but which he says is not enough on its own to warrant a long.
As such, Dodd says risk/reward in the medium-term remains to the downside but he suggests taking some profits on shorts as a result of these bullish signals.
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EURO STOXX 50