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CFDs on WTI Crude Oil
Long
Updated

Crude Oil Technical Analysis - October Outlook

192
Crude oil is showing a notable recovery from its recent lows, currently trading around the $72 mark. A few key observations based on the price action and indicators:

  • Price Pattern and Trend:
The chart shows a classic descending wedge pattern, which signals a potential bullish reversal. The breakout from the wedge is accompanied by a price surge above the 20-day and 50-day moving averages, suggesting a short-term trend change.

  • Key Support Levels:

  1. Immediate Support: Around $70.64, marked by the breakout level.
  2. Strong Support: At $68.23, where significant buying interest has been observed in the past, reinforced by a bullish consolidation zone.


  • Resistance Levels:

  1. First Resistance: $72.11, which has been tested, with potential room for the price to move higher if momentum sustains.
  2. Critical Resistance: $77.23, which coincides with a strong historical supply zone. A close above this level would signal further bullish momentum
.

  • Volume Profile Insight:
A noticeable shift in the volume profile near the $70 mark suggests accumulation by institutional investors, hinting that buyers are stepping in to defend this level.

  • RSI Indicator
: The Relative Strength Index (RSI) has bounced back from oversold levels and is now showing early signs of positive divergence, supporting the case for an upward move.

  • Geopolitical Factors:
With rising tensions in the Middle East, as highlighted in the annotation, traders and investors are pricing in potential supply disruptions, contributing to the recent spike in oil prices.

  • Conclusion:
Oil prices may continue to rise in the short term, with $72.11 being a key level to watch. If sustained above this, the next target would be $77.23. However, if prices fall back below $70, we could see a retest of support at $68.23. Given the geopolitical uncertainty, traders should remain cautious of potential volatility.

Trade closed: target reached
traget reached
AngshumanSaikia
Also on:
Beyond Technical AnalysisChart PatternsconflictiranisrailNEWSOilTechnical AnalysisTrend AnalysisWAR

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Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Beyond Technical AnalysisChart PatternsconflictiranisrailNEWSOilTechnical AnalysisTrend AnalysisWAR
AngshumanSaikia
Also on:

Related publications

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.