1. As expected in my updated comment in the previous idea , USOIL (02/03/33), which I expected that the new market day will start with a big jump due to selling from traders to collect the profit at the higher levels reached yesterday.
2. This is normal because market must make a backward rebound for corrections after the massive increases yesterday.
3. Also, the downtrends will be supported as a result of news coming from the white house that US will release 30M of oil reserves to maintain the increase in oil prices. In the same context, the international agency of energy agreed to increase the production by 60M of oil to substitute the shortage coming to oil markets due to economic, trade, and financial sanctions placed on Russia last 72-hrs which are already active now.
4. The chart is showing that hammer candle created in the beginning of this day trade at closing price lower than the previous one in addition to the next candle which open at the previous closing price. This confirms the idea of price downtrend for today as traders are keep selling their shares.
5. Also, the RSI indicator shows the downtrend idea as the RSI had been intersected with RSI-EMA10 at a point above the 70% which confirms that bears strongly entered the market in the overbought zone and will easily pull down the prices around the 30% level in the overselling zone before rebounding back to the normal USOIL prices.
6. During prices downtrend journey (green arched arrow), prices will get some resistance at the 78.6% level following by a strong support at the 61.8% level which can be an entry point for short term traders of today but finally the prices will move down to make corrections at the 50% level before performing a LL point ($93. xx ) in region X inside the major supporting (green) Zone.
7. General expectation of the day that prices will be in the downtrending direction unless any political changes may occurs like Russians-Ukrainians reach agreement terms after their second meeting today.
Tools used for analysis were BB indicator, Fib pattern, ZigZag++, exponential moving average , and RSI indicator.
2. This is normal because market must make a backward rebound for corrections after the massive increases yesterday.
3. Also, the downtrends will be supported as a result of news coming from the white house that US will release 30M of oil reserves to maintain the increase in oil prices. In the same context, the international agency of energy agreed to increase the production by 60M of oil to substitute the shortage coming to oil markets due to economic, trade, and financial sanctions placed on Russia last 72-hrs which are already active now.
4. The chart is showing that hammer candle created in the beginning of this day trade at closing price lower than the previous one in addition to the next candle which open at the previous closing price. This confirms the idea of price downtrend for today as traders are keep selling their shares.
5. Also, the RSI indicator shows the downtrend idea as the RSI had been intersected with RSI-EMA10 at a point above the 70% which confirms that bears strongly entered the market in the overbought zone and will easily pull down the prices around the 30% level in the overselling zone before rebounding back to the normal USOIL prices.
6. During prices downtrend journey (green arched arrow), prices will get some resistance at the 78.6% level following by a strong support at the 61.8% level which can be an entry point for short term traders of today but finally the prices will move down to make corrections at the 50% level before performing a LL point ($93. xx ) in region X inside the major supporting (green) Zone.
7. General expectation of the day that prices will be in the downtrending direction unless any political changes may occurs like Russians-Ukrainians reach agreement terms after their second meeting today.
Tools used for analysis were BB indicator, Fib pattern, ZigZag++, exponential moving average , and RSI indicator.