USOIL WTI shows signs of weakness - but bulls aren't gone yet
Updated
Friday USOIL was indecisive towards end of day and closed around 68.65, just below daily 50 EMA.
This morning it gapped up and opened 69.45 but market immediately closed the gap and now USOIL is trading around 68.3, below the weekly open, below last week's close, below the daily 50 EMA, but just above the daily 100 EMA.
Market rallied extremely strong last week and it's very likely we will find buyer's on the way down that can push back till 70-71 levels.
Current level above daily 100 SMA is a good support, and chart also indicates other buying zones that can be considered for going long.
My personal preference is towards the short side given the channel and the recent crashes, but we need to wait for a pullback to higher levels or short on downside momentum/breakout.
Note that UKOIL Brent has shown a similar gap up/close down today while it touched the top trendline of a similar falling channel, increasing arguments to sell. Reaching 70 levels on USOIL would most likely mean breakout of channel on UKOIL, attracting buyers. Or saying it differently, at current UKOIL Brent levels additional sellers will come in that could also push USOIL down.
This morning it gapped up and opened 69.45 but market immediately closed the gap and now USOIL is trading around 68.3, below the weekly open, below last week's close, below the daily 50 EMA, but just above the daily 100 EMA.
Market rallied extremely strong last week and it's very likely we will find buyer's on the way down that can push back till 70-71 levels.
Current level above daily 100 SMA is a good support, and chart also indicates other buying zones that can be considered for going long.
My personal preference is towards the short side given the channel and the recent crashes, but we need to wait for a pullback to higher levels or short on downside momentum/breakout.
Note that UKOIL Brent has shown a similar gap up/close down today while it touched the top trendline of a similar falling channel, increasing arguments to sell. Reaching 70 levels on USOIL would most likely mean breakout of channel on UKOIL, attracting buyers. Or saying it differently, at current UKOIL Brent levels additional sellers will come in that could also push USOIL down.
Note
USOIL found strong support at 68.00 and the daily 100 SMA, followed by a rebound back over daily 50 EMA and it looks like it will aim for 70.50-71.00 at the top of the falling channel and the daily 50 SMA. Bull's aren't gone, as title said.Let the market squeeze out to that 71.00+ and enter a short where the early seller's will get stopped out.
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