USOIL New Development: After the end of Friday's New York session, a S&R Zone formed on the Hourly from short consolidation, making it a two-tiered Zone.
If the bulls rise above the S&R Zone and head upwards, they can go towards the Pivot High of 61.42. A breach of that price level means the bulls want to rise more to another conservative take profit level at 62.31 (that is based on a measured move from a previous bull run).
But if the bears drop below the S&R Zone, then they can head towards another S&R Zone (that starts at 60.08).
USOIL For Swing Traders: The Weekly shows an interesting story unfolding. It's in Neutral (directional) Market Bias from the Bearish Trendline (not shown) and Bullish Trendline (in green dotted line) fanned out. Price action under Neutral Market Bias conditions tends to gravitate, in this case, from the upper end of a Bearish Trendline to the other, lower extreme end of the Bearish Trendline (in green dotted line), then back up again until a breakout at a trendline. There have been three candles that have touched and temporarily pierced past this Bearish Trendline (in green dotted line).
After a Three Methods Falling pattern (that leads to a continuation of a bearish trend) dropped the market down, the bearish trend culminated in a tall Pinbar Hammer with a long lower wick that needed filling. The bulls retraced, then went into consolidation, forming a Bearish Pressure Zone and Pivot High (at 64.83). The pressure drove the market down to create a Double Bottom and filled the lower wick of the Bullish Pinbar Hammer that formed earlier.
A bottom reversal pattern in the form of a Piercing Pattern appeared, but needs confirmation with another bullish candle afterwards (to confirm a definite move to the upside). If a bearish candle appears, then that negates it.
A conservative Take Profit Projection to the upside is towards the Pivot High of 64.83. If achieved, then more moves to the upside. But if not, then back down it goes.
WTICOUSD If the numbers continue to fall, we move closer to supply equilibrium, and we will find a base price. i am not convinced we have found a base price yet as supply still outstrips demand, OPEC will continue to unwind cuts and we will see a peak in oil production this year. we should be mindful of price highs. generally speaking,
USOIL It was suggested earlier that an M-shaped pattern may be forming on the Hourly. So far, it's looking more like it - very clean cut and textbook variety.
If it's still true, then the 4th leg of the M-pattern is usually a long bear trend.
USOIL Special Delivery: On the 4-Hour that is in Bullish (directional) Market Bias, a Double Inside Day showed up. That means a BIG move is coming. This can show up anytime between this New York session and Sunday. It can look amazing on the lower timeframes.
Also, notice that we have had two, back-to-back Double Inside Days on the 4-Hour timeframe, so there's a setup for a really BIG move.
USOIL New Development:
