Crude oil traded near a six-week low as rising U.S. jobless claims and a contraction in manufacturing added to concern growth in the world’s biggest oil-consuming nation is slowing. Oil, down 1.2 percent this week, fell yesterday after the Labor Department said weekly claims for unemployment benefits climbed to the highest level since November. The Federal Reserve Bank of Philadelphia’s general economic index dropped to the lowest reading since July 2009. Total U.S. petroleum inventories reached the highest in at least 20 years, Energy Department data showed earlier this week.

Trading Tactics

A clear downtrend could be an opportunity to sell Crude Oil.

A buying point is at 76.50; Fibonacci 50% is the take profit at 78.40; Pivot point is the stop loss at 75.15

A selling point is at 74.88; Pivot point is the take profit at 73.10; Fibonacci 23.6% is the stop loss at 76.10

Technical: Crude oil fails to break the previous resistance and forms double top reversal pattern. A move back lower could set up a test of 73.10

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards for a small correction reason; Momentum and RSI (Relative Strength Index) are in a downtrend; Stochastic oscillator is in a bullish direction.

*Analysis is for information purposes only and does not constitute advice in any form. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.