Support and Resistance Crude Oil Technical Analysis and Support & Resistance Trading Signals

Support & Resistance is one of the widely used concepts in oil trading. Most traders plot horizontal lines to show these levels.

There is also an indicator used to draw these levels automatically & indicate the resistance & support levels.

Support & Resistance Oil Technical Indicator

When it comes to these levels crude oil price can either bounce off these regions or break out through these regions.

If a resistance level is broken crude oil price will move higher and the resistance level will turn to a support.

If a support level is broken crude oil price will move lower and this level will turn to a resistance.

Oil Price where the majority of investors believe that crude trading prices will move higher, while resistance levels indicate the crude trading price at which a majority of investors feel crude trading prices will move lower.

Once crude trading price has broken through a support or a resistance then it is likely that the crude oil price will continue to move in that specific direction until such a time when it gets to the next support or resistance zone.

The more often a support or resistance level is tested or is touched by the crude oil price and bounces, the more major that particular level becomes.