UKOIL | Higher targets!

Jul 14

By analyzing the Weekly chart of Brent Oil we can see that after the announcement of ceasefire being over and the Strait of Hormuz being closed, Oil surged, going from 75.22 all the way to 87.55! It went through the Volume Imbalance and then dropped a bit, currently being traded at around 86.50.

With the restart of War, Iran's important Ports and Islands being bombarded, Strait of Hormuz being closed and President Trump's order to put the strait under siege, Oil will continue its upwards move for the time being, unless negotiations restart or another ceasefire is announced.
I expect Oil go higher towards the Volume imbalance at 97.50 to 104.24. After that, if the siege continues and the strait remains closed, Oil could go even higher towards the 119.50 level which has a large Buyside Liquidity pool above it. In the meantime and on its way towards higher targets, Oil must go through the Supply Zone that coincides partially with the Volume Imbalance.

For the time being and as long as this situation persists, Gold is gonna go down and Oil is gonna go higher, considering the Demand is for Oil is gonna skyrocket with the strait being closed.
In the unlikely event of a ceasefire, the first demand zone awaiting Oil price is between $70 to $75.

Jul 21

Trade active

By examining the Weekly chart of Brent Oil we can see that after yesterday's open, it fell to the Volume Imbalance, going as low as 86.12, but then it bounced back up, reaching $91.99 today and is currently being traded at around 91.50. After President Trump rejected the 10-day ceasefire, Oil surged.

Considering the geopolitical tensions, Oil will most likely continue its upwards trend towards our designated targets. With the Strait of Hormuz being closed, the tensions are at a all-time high, and it may continue. Also, Saudi Arabia has decided to transfer its Oil via the Red Sea, and the Houthis of Yemen have threathened that they will attack anyone that crosses the Red Sea. With all of these stuff going on, everything points at Oil's price surge will continue for the time being.

In the unlikely even of an Ceasefire and the Strait of Hormuz reopening, we could see Oil drop, but with the way everything's escalating, that doesn't seem to be the deal.

Jul 23

Trade closed: target reached

By analyzing the Weekly chart of Brent Oil we can see that it finally reached the $100 mark once more and has gone as high as $101.07, and it is now inside the Volume Imbalance that was pinpointed on the chart. This means that we have reached our target.

I expect Oil to go higher than 104.24, which is the high of the Volume Imbalance, as there's nothing indicating that Oil is gonna stop going higher right now, considering all the geopolitical factors. With the war going on and the ceasefire proposed by Qatar and Pakistan being rejected by both US and IR, this means higher targets for Oil, eyeing 119.50 Major Buyside Liquidity to be swept away.