Thursday, December 18, 2014

Crudeoil positional analysis 18.12.14 Update II

Breakout and the Role Reversal Scenario

There will come the time, when support or resistance level will be broken. In case that support level is broken downwards, the same price level becomes new resistance level from that moment on. If the resistance level is broker upward it becomes the new support level. The shift in supply and demand causes the breached level to reverse its role, however, for a true reversal to occur it is important that breakout is characterized as strong move, which is normally supported by higher volume.

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