What's up my investor friends?

Crude oil has been in a free fall after reaching a high of 71.30 on March 7. Price showed a strong breakout at the 65 support area and has been holding below it for the past few days.

At the moment oil has formed a bearish flag pattern just below the 65 support (red line) and the downtrend line (blue line).

This indicates a possible drop to the next support area at 62.40 - 62.00 prices.

We must keep in mind that this would be the minimum target in case of breaking the pattern successfully. But we should also know that the real target of the pattern is measured is by the flagpole and cloning it to the breakout area, as I show below:

Therefore, the real target of the pattern would be located at the 58 support area.

Personal opinion

I would wait for a convincing breakout of the pattern to the downside and sell with Take Profift at 62 and 58. I would place Stop Loss above the downtrend line and resistance at 65.

We must wait for the price action friends.

I hope you find my analysis useful. Best regards colleagues!

Important

The information provided in this publication should not be considered as an investment recommendation. Trading cryptocurrencies, forex, stocks, among others, is risky.