WTI Oil (USOIL) hit and broke last week the 93.75 Resistance (which was the October 10 & November 07 2022 Highs) but failed to stay above it and got aggressively rejected back below it. This emphatic rejection indicates that as long as the price doesn't close a 1W candle above the Resistance, the short-term trend has more probabilities of being bearish.
** Cup and Handle **
We often like to view our financial assets on a more long-term scale using larger time-frames. We can claim that the recent Channel Up since June has completed a Cup formation. What technically follows within this pattern is the formation of the Handle. If Oil is indeed trading on the Cup and Handle (C&H) pattern, then once the bottom of the Channel Up breaks (assuming we keep closing below the 93.75 level), it can start the formation of the Handle part.
** The importance of the MA levels **
This 1W chart shows also the important that the 1W MA50 (blue trend-line), 1W MA100 (green trend-line) and 1W MA200 (orange trend-line) have been having in the past year or so. They act as Supports until broken and move to the next one and similarly as Resistances. As you can see the current bull run since June started after the 1W MA200 held repeatedly (closed above it 7 candles despite hitting and breaking it), then broke above the 1W MA50 that was holding since August 2022 and 1W MA100 that was holding since November 2022.
** So what's the target? Fibs in play? **
So as long as the conditions mentioned above are met and Oil starts forming the Handle, you can use the 1W MA100 (closing below it) as the break-out sell signal and target the 1W MA50 at $80.00. This is marginally above the 0.5 Fibonacci retracement level, which has its own fair share of importance. Notice that the 1W RSI is just below the 70.00 overbought barrier.
-------------------------------------------------------------------------------
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! **
-------------------------------------------------------------------------------
💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
** Cup and Handle **
We often like to view our financial assets on a more long-term scale using larger time-frames. We can claim that the recent Channel Up since June has completed a Cup formation. What technically follows within this pattern is the formation of the Handle. If Oil is indeed trading on the Cup and Handle (C&H) pattern, then once the bottom of the Channel Up breaks (assuming we keep closing below the 93.75 level), it can start the formation of the Handle part.
** The importance of the MA levels **
This 1W chart shows also the important that the 1W MA50 (blue trend-line), 1W MA100 (green trend-line) and 1W MA200 (orange trend-line) have been having in the past year or so. They act as Supports until broken and move to the next one and similarly as Resistances. As you can see the current bull run since June started after the 1W MA200 held repeatedly (closed above it 7 candles despite hitting and breaking it), then broke above the 1W MA50 that was holding since August 2022 and 1W MA100 that was holding since November 2022.
** So what's the target? Fibs in play? **
So as long as the conditions mentioned above are met and Oil starts forming the Handle, you can use the 1W MA100 (closing below it) as the break-out sell signal and target the 1W MA50 at $80.00. This is marginally above the 0.5 Fibonacci retracement level, which has its own fair share of importance. Notice that the 1W RSI is just below the 70.00 overbought barrier.
-------------------------------------------------------------------------------
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! **
-------------------------------------------------------------------------------
💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
👑Best Signals (Forex/Crypto+70% accuracy) & Account Management (+20% profit/month on 10k accounts)
💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!
💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!