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Hugo in HTO Trading,

Crude oil: May find some support at the 50-week moving average

Since the start of the year the commodity gain more than 16.0% however last week fell more than 6.0% and made a phase change at the end of August, shifting from a bullish to a warning phase.

Last week the crude oil fell with a wide range and closed near the low of the week, in addition managed to close below the previous week low, which suggests a strong bearish momentum.

The stochastic is showing a weak bullish momentum although is above the 50 mid line.

Expecting an upward move to a weekly support at 47.78 on a bounce of the 50-week moving average at 41.97 (scenario 1) however a break below the key level at 39.60 may drag down the commodity price to a weekly support at 32.20 (scenario 2).