Long

USOil | New perspective for the week | Follow-up detail

Updated

This is a follow-up detail to my previous analysis of this commodity where we closed the week with approximately 200pips profit. Oil prices plunged about 1% on Friday after top crude oil importer China widened its COVID-19 curbs, though the price of oil rose during the course of last week's trading session after a significant breakout of the much anticipated $86.00 level to set the tone for a bullish momentum in the coming week(s).

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The week has begun on a bearish tone as the price breaks down the $87.00 mark which appears to be the neckline of a structure that looks like an H and S pattern - a structure representing a potential reversal pattern. However, since we have been looking for a buying opportunity following the breakout of the much anticipate key level at the $86.00 mark and considering the present situation where the price is within the buy zone identified in the video; let's see how far this bearish move is going to go before the appearance of a reversal pattern that will present the leverage to join the second phase of the potential bullish momentum. It's important that we wait and see how the price will relate to the key zone at the $86 area before making a decision for the week.

Good morning

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We have begun to observe buying pressure from the $86 level in the last couple of hours to get us prepared for another wave of bullish momentum. So, I have identified two expectations which are illustrated on the chart with arrows. Whatever happens and from this juncture, it is worth noting that above the $86.80 level looks promising to buy the USOil. And when a breakout/retest of the $87.00 happens, we plan to add one more position. Let's remain patient

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and if the price comes back to the $86 mark followed by buying pressure, then buying will be reasonable.

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Price plunges deep into the $85.00 area which is still within the buy zone. Patience is needed here... update coming soon

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UPDATE

Still waiting...

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Over 100pips in profit; securing position

Good morning

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UPDATE

Over 200 pips in profit; securing the buy position

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UPDATE

Its 260pips in profit since our entry point on Tuesday; securing the current position. Let's see if the market will present another chance at a retest of the $88 area to add more positions. Update coming soon

Good morning

Note

It is worth noting that there are a series of high-impact events today which is highly likely to be a catalyst for price movement. So, we shall be monitoring the behavior of price action prior to and after the events.

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The second position triggered; secure position

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Planning to add position at breakout/retest of the $89.00 level

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A total of 360pips running in profit (2 positions); locking in desired profit now to secure a position as price finds a lower high just below the supply zone at the $89 mark.

Good morning

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After being taken out of the buy position with approximately 400pips profit (2 positions). It's unfortunate that I missed the buying opportunity at the multiple rejections of the $87.00 mark as this happened in the middle of the night... Congratulations to those who took this move! Now, what are we going to do at this juncture? Well, we can see how the $89 level has been holding selling pressure since the beginning of this week and the price appears to have broken this level in the last couple of hours. Hence the breakout/retest of the $89 level might be a confirmation that the sellers have been taken out of this structure to confirm a bullish continuation. Let's also be aware that anything that happens from now on shall be in anticipation of the NFP coming up later today. Best of luck today.

Good morning

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UPDATE

Securing position

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Price action moved over 600pips in our direction since the current entry (2 positions); securing the position.

Happy weekend to you!

darcsherry

Trade smart. Trade consciously

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USOil | New perspective for the week | Follow-up detail

by darcsherry

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