Could We See the USOIL Reaching Its Previous High Again ?
1- Market Overview:
On the daily time frame, we can see that the USOIL is in a clear upward movement where a series of higher highs and lows has been posted. On the 3rd of March, the commodity rallied hugely and reached a high of 129.39 USD per barrel, the highest price since May 2011. Now, the price formed a triangle where it managed to break it to the upside after finding buyers around the 93.70 USD support level.
2- Long Scenario:
In this part of our analysis, we will provide you with what likely will occur in the coming days for the USOIL. Since the main direction of the trend is to the upside as shown in the overview part of the analysis, it is more likely to see the USOIL continues its move to the upside. Remember that the trend is your friend, so if everyone is buying, it is much wiser to consider a long position instead of a short one. In addition, the market succeeded to break the triangle to the upside which shows that the buyers are in control of the market and could push it furthermore to the upside toward the previous high (129 US Dollar).
3-Short Scenario :
The least likely scenario for this analysis is to see the USOIL reversing and move lower. The commodity might first face a resistance from buyers around the 93 USD mark level before tumbling toward the 85 USD price. If the buyers could not sustain the huge number of sellers around this zone the market could tumble again to the support zone which is the 66 US Dollar by posting lower lows and lower highs. So, first we should look for a breakout of the previous low around the 93 USD mark and then posting a new low below the 85 USD mark before reaching the 66 US Dollar.
On the daily time frame, we can see that the USOIL is in a clear upward movement where a series of higher highs and lows has been posted. On the 3rd of March, the commodity rallied hugely and reached a high of 129.39 USD per barrel, the highest price since May 2011. Now, the price formed a triangle where it managed to break it to the upside after finding buyers around the 93.70 USD support level.
2- Long Scenario:
In this part of our analysis, we will provide you with what likely will occur in the coming days for the USOIL. Since the main direction of the trend is to the upside as shown in the overview part of the analysis, it is more likely to see the USOIL continues its move to the upside. Remember that the trend is your friend, so if everyone is buying, it is much wiser to consider a long position instead of a short one. In addition, the market succeeded to break the triangle to the upside which shows that the buyers are in control of the market and could push it furthermore to the upside toward the previous high (129 US Dollar).
3-Short Scenario :
The least likely scenario for this analysis is to see the USOIL reversing and move lower. The commodity might first face a resistance from buyers around the 93 USD mark level before tumbling toward the 85 USD price. If the buyers could not sustain the huge number of sellers around this zone the market could tumble again to the support zone which is the 66 US Dollar by posting lower lows and lower highs. So, first we should look for a breakout of the previous low around the 93 USD mark and then posting a new low below the 85 USD mark before reaching the 66 US Dollar.
