Since the beginning of 2018, the commodity gained more than 8.0% but last week ended with a drop of more than 1.5% however remains in a bullish phase since early September 2017.
Last week crude oil fell with a narrow range but found enough buying pressure to trim some of its initial losses although closed in the middle of the weekly range, additionally managed to close within the previous week range, which suggests being clearly neutral, neither side is showing control.
Stochastic is showing an extreme overbought market and is beginning to display a shy bearish momentum.
After making a new high for 2018 at 66.64, the crude oil choose to take a pause in its amazing upward trend that began in early October 2017. Seems like the commodity is ready for a long overdue correction.
Expecting a downward move to a weekly support at 59.20 on a break below the previous week low at 63.65 (scenario 1) however a bounce from the actual 2018 high at 66.64 may set in motion a downward correction to the weekly support at 62.70 (scenario 2).