USOIL
Rectangle A: Price retraced back to our swing support area after forming a new high at 72.6.
Rectangle B: Bulls attempt to make a move up but this is short lived as the bears resume control after two bullish candles. This is then followed by price breaking below the 67 area indicating selling strength.
When such a key level is broken, we normally expect an impulse move. This was not the case. Price made a new low, retraced to the 67 area (which is now resistance), retried to make a new low and failed. This indicated the bears were now losing ground.
Arrow 1: A couple of bars later, bulls were in charge and the market broke through the resistance area.
Arrow 2: Price retraced back to the 67 area.
Rectangle C: A higher low is formed indicating the bulls are still in control.
Rectangle D and E: Price is showing weakness in attempting to go higher. (Notice the similarity with Rectangle A and B).
Unless bulls take control of this market, there is a very big chance the 67 support area is going to be broken again.
Comment:
Our perception of the market has since changed after the formation of Higher highs and Higher lows.
