Support and Resistance Oil Trading Technical Analysis & Support and Resistance Trading Signals

Support and Resistance is one of the widely used concepts in oil trading. Most traders draw horizontal lines to explain these levels.

There is also an indicator used to draw these levels automatically & indicate the resistance & support levels.

Support and Resistance Oil Trading Indicator

When it comes to these levels crude oil price can either bounce off these levels or break-out through these levels.

If a resistance level is broken crude oil price will move higher and the resistance level will turn to a support.

If a support level is broken crude oil price will move lower and this level will turn to a resistance.

Oil Trading Price where the majority of investors believe that oil prices will move higher, while resistance levels indicate the crude oil price at which a majority of investors feel oil prices will move lower.

Once crude oil price has broken through a support or a resistance then it is likely that the oil prices will continue to move in that particular direction until such a time when price gets to the next support or resistance level.

The more often a support or resistance level is tested or is touched by the crude oil price and bounces, the more major that particular level becomes.