Hi Folks:
Previous support acted now as a resistance. If you check the chart you will see that we hit exactly at the 73.12 area and pulled back after a +8% profit in two sessions.
Omicron fear seems to have faded at the moment as the variant seems to be less harmful as initially expected. That's the main catalyst for the oil price spike.
Another one has been the damages (minor) of the Saudi Aramco oil facilities in Saudi Arabia by the Yemen Houthi's forces who launched some drones once again.
Global tensions are rising in Ukraine due to Russia military forces threatening an attack or invasion.
What to expect now from such events? Honestly I have no clue, I won't lie. Technicals in oil are often left aside as secondary trading system once volatility is gone, but so far there is stlll more than usual volatility in OIL and therefore anything could happen either way.
Being said that and as long as the descending channel remains respected, I would just follow it taking positions at the edges with tight SL.
We are currently traing in between main EMA's and that's what makes it even more complicate to pick a side.
At this point I am personally very cautious and just patiently scalping a little bit both ways, grasping some pips here and there as I can not foresee at this point any clear direction.
One final note: US oil output seems to be growing as well so it is expected to hit 12.2mbpd this December.´
We could be also developing a HS pattern, currently developing the right shoulder.
STAY SAFE. Cheers
USOIL
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.
Previous support acted now as a resistance. If you check the chart you will see that we hit exactly at the 73.12 area and pulled back after a +8% profit in two sessions.
Omicron fear seems to have faded at the moment as the variant seems to be less harmful as initially expected. That's the main catalyst for the oil price spike.
Another one has been the damages (minor) of the Saudi Aramco oil facilities in Saudi Arabia by the Yemen Houthi's forces who launched some drones once again.
Global tensions are rising in Ukraine due to Russia military forces threatening an attack or invasion.
What to expect now from such events? Honestly I have no clue, I won't lie. Technicals in oil are often left aside as secondary trading system once volatility is gone, but so far there is stlll more than usual volatility in OIL and therefore anything could happen either way.
Being said that and as long as the descending channel remains respected, I would just follow it taking positions at the edges with tight SL.
We are currently traing in between main EMA's and that's what makes it even more complicate to pick a side.
At this point I am personally very cautious and just patiently scalping a little bit both ways, grasping some pips here and there as I can not foresee at this point any clear direction.
One final note: US oil output seems to be growing as well so it is expected to hit 12.2mbpd this December.´
We could be also developing a HS pattern, currently developing the right shoulder.
STAY SAFE. Cheers
USOIL
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.