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There is a possible one-day bullish hammer reversal candle to be established today. If so, a breakout above today\u2019s high confirms the pattern. It shows sellers being in control earlier in the day\u2019s trading session as crude oil dropped below yesterday\u2019s low and signaled a bearish continuation. But sellers could not maintain control and the price of crude subsequently advanced following a $56.67 low.<\/p>\n
Thursday\u2019s trading range was relatively wide, from $56.67 to $59.33, and it occurred within a sharp three-day decline contained within a larger bearish trend. Therefore, it wouldn\u2019t be surprising to see a day of rest and consolidation inside today\u2019s range before crude oil is ready to advance and trigger the potential hammer pattern.<\/p>\n
Irrespective of bearish considerations, a bullish breakout will be indicated on a rally above today\u2019s high of $59.33 and confirmed by a daily close above that high. Crude oil would then rise in a larger downtrend and up into resistance zones. The first price area to watch for minor resistance is around $60.40, which was an interim higher swing low. Since resistance was found during the first counter-trend rally around the 20-Day MA, currently at $62.00, it provides a maximum initial upside target if today\u2019s signs of strength lead to a bounce. However, the 61.8% Fibonacci retracement level at $62.01 currently marks the same price area. It provides another target, and it is correlated with prior daily support.<\/p>\n