Source: TradingView Past performance is not a guide to future performance
Over the past two days, the price has risen above 6% from the low of $51.38 per barrel yesterday. Now the next resistance level is at $55.22 per barrel, but the mean value area stands at $56 per barrel. This value is represented by the peak of the bell curve on the volume profile indicator on the right-hand side of the chart.
If the tension in the Middle East continues, then $56 per barrel could be retaken, but we need more confirmation that Saudi Arabia was responsible for the attacks on Iranian oil tankers near the Red Sea.
*A ‘Hammer’ candlestick is a term used by technical analysts to describe a specific chart formation. It forms when a share or other instrument falls sharply after the market opens, but ends the day much higher than the low. It looks like a lollipop, or a hammer.
Rajan Dhall is a freelance contributor and not a direct employee of interactive investor.
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