Crude oil formed a Bullish Harami candle last Friday, the 27th of September, 2024 at a very strong support level of USD 67 that has supported price on multiple occasions in the past. Notice that the candle did not breach the low of the prior day, adding conviction to a bullish trade. Past price action after such a candle formation suggests an imminent rally.
Daily Chart of WTI Crude Oil - Bullish Harami candle on 27th September suggests a strong rally
However, be aware of the strong overhead resistance in the USD 69 to 72 zone. The strength of any subsequent price move could be gauged by crude's behavior in this zone. Would it be able to move past this zone just as effortlessly as it descended from a level of USD 72? If it does, crude is likely to move past the USD 72 zone in what would be a breakout above a 1-2-3 bottom and the start of a fresh move northwards.
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