Oil prices have retraced just under 8% from the MTD (month-to-date) high. And it looks like the market is trying to stabilise around a support cluster, just above the $80 handle. The cluster includes the 50-day MA, high-volume node and prior consolidation zone.
A small doji also firmed around these levels to suggest a swing high has formed, or very near.
A bounce to $84 could be on the cards as part of a technical retracement against its prior move lower. Bulls could enter live around current levels with a stop beneath $80, or seek dips towards it in anticipation of an eventual move higher to increase the potential reward to risk ratio.
A small doji also firmed around these levels to suggest a swing high has formed, or very near.
A bounce to $84 could be on the cards as part of a technical retracement against its prior move lower. Bulls could enter live around current levels with a stop beneath $80, or seek dips towards it in anticipation of an eventual move higher to increase the potential reward to risk ratio.
Comment:
So far so good. A classic swing low has formed around the support cluster, and if the US dollar continues to correct (which it look like it may, given the fall in yields) then a move towards and potentially above $84 is on the cards.