OIL : A BULLISH POTENTIAL FOR THE BLACK GOLD?
- The market has been trading inside a bearish wedge since the end of September 2023, registering lower highs and lows. The medium-term trend is therefore bearish.
- In the shorter term, prices have registered a sharp rebound since their impact on their annual low around $68. This rebound led the market the upper limit of its wedge, below the 23.6% Fibonacci, above the two exponential moving averages at 21 and 34 periods.
The RSI indicator has shown a clearing of its bearish trendline, a phenomenon that generally occurs in ahead of the market.
- Although still in a downward trend, technical indicators tend to show that the buying appetite for black gold is only just beginning. A clearing of $74.15 (23.6% Fibonacci) would therefore open the way to a resumption of the bullish trend towards $78.00, $81.00 and even higher by extension.
In the very short term, a pull-back towards the last support above $72.17 also remains a possibility. If this level does not hold, the entire bullish scenario previously mentioned could well be invalidated.
- In the shorter term, prices have registered a sharp rebound since their impact on their annual low around $68. This rebound led the market the upper limit of its wedge, below the 23.6% Fibonacci, above the two exponential moving averages at 21 and 34 periods.
The RSI indicator has shown a clearing of its bearish trendline, a phenomenon that generally occurs in ahead of the market.
- Although still in a downward trend, technical indicators tend to show that the buying appetite for black gold is only just beginning. A clearing of $74.15 (23.6% Fibonacci) would therefore open the way to a resumption of the bullish trend towards $78.00, $81.00 and even higher by extension.
In the very short term, a pull-back towards the last support above $72.17 also remains a possibility. If this level does not hold, the entire bullish scenario previously mentioned could well be invalidated.