A failure to close above resistance at $49.9 on a weekly basis leads Andy Dodd, Head of Technical Research at Louis Capital Markets, to expect further downside for Crude.
According to Dodd, the $49.9 resistance has proved resilient and the third rejection of a break above this level left a bearish Gravestone Doji candlestick a few weeks ago (see Chart). On top of this, Dodd notes that last week’s price action left another bearish candlestick in the form of a Hanging Man. As such, he no longer sees any reason to be long in the short- to medium- term.
Read the full report, including an analysis of the following futures markets:
Dow Jones 30
Dow Jones Transportation Index
EURO STOXX 50