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

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

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

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

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

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

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

Once crude crude oil trading price has broken through a support or a resistance then it is likely that the crude 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 crude oil price and bounces, the more major that particular level becomes.

Crude Oil Technical Analysis and Generating Oil Trading Signals

These levels are calculated a oil trend lines method.

Upwards Crude Oil Trading Trend

In an upwards oil trend the resistance and support will generally head upward

Upward Oil Trading Trend

Downwards Crude Oil Trading Trend

In a downwards oil trend the resistance and support will generally head downward

Downward Oil Trading Trend