Growth concerns around the latest COVID-19 variant Omicron is fuelling weakness in energy markets and is provoking burn off in crude oil prices.
Crude oil has been trading in red since its peak of $85.38 on October 25th. However, the daily chart patterns show that it is currently in a rebound cycle and is on its way to break through the red pressure zone.
As can be seen from the chart below, crude oil is currently quoting at $69.476. The effort from oil bulls trying to push the price upwards have so far been successful. This is evident from the bullish pinbar that has appeared in the chart, raising hopes of buyers.
The fact that the crude oil price has not yet touched the lower support area of $66.40 also gives confidence to buyers who are seeing this as a good opportunity to buy. In addition to this, crude oil performing well in the last week, reaching a high of $73.30, and bulls successfully testing the 20-day EMA average several times are also acting as a confidence booster to the buyers.