Saudi arabia's increased output by 10M barrels was the cause for this decrease in price.
Today United states Crude oil Invetories were down 237M barrels vs the forecast and that plus F.E.D decision gave some fuel to the price.
Technically we can see the channel that oil's price is moving,plus the formation until wave 4 and the that is forming by the price movement.
I am long until 53-55$ area,a strong resistance exists that will form the wave 5 of Elliott's waves formation.
After this movement the must 'break' and crude oil has to decide.
Usually rising are breaking downwards and the news feed behind this movement of the price will propably be the failure of O.P.E.C agreement on crude oil's ouput once again as happened before a lot of times but we will see..
LONG AT 53-55 AREA
AFTER THAT 2 SCENARIOS
1)LONG UNTIL 57-60$AREA
2)PROPABLY SHORT AT 44$(SUPPORT AND 61.8 FIB LEVEL)AREA AND SECOND AREA 40$(STRONG SUPPORT AND 78.6 FIB LEVEL)
HAPPY TRADING GUYS!!