As you know Russia has just sparked what may end up being among the ugliest oil price wars in recent history. Russian President Putin announced on sunday that present oil prices were sustainable for the russian economy.
And Saudi Arabia is firing back, in sunday morning, saudia arabia dropped its own oil weapon and within seconds of the market opening, oil prices plummeted as much as 30 percent, driving to its lowest level 27.32$ in four years. As the two oil Super Powers face-off, American oil companies may end up as the biggest victims.
So whats next, if Oil capitulates anytime this week or may be next week $27.32, the next test isn't too far at $25.42, if gets broke too, the next hurdle will be $24.82 marking a near 17 year low (2003).
Conclusion!
So lets take a chance in Oil buying after short term drop at the level of $27.32 and $24.82 ( 2016 and 2003) history low.
Support 1: $27.32
Support 2: $24.82
Resistance 1: $39.01
Resistance 2: $55.50
Resistance 3: $87.24
Traders be aware, there is not a V-shape recovery. "Check bullish momentum" , Market should make big candles or moves rapidly upside to near term Resistance 1, when it breaks R1 the next hurdle will be Falling wedge dotted Line (mentioned in chart) near R2, if gets broke too, than next target will be R3. You must have keep an eye on Geo political situations and use proper Technical tools with proper Money Management and Emotional discipline.
