USOIL - Follow-up post after the consolidation breakout
See the linked idea post for reference to the original chart.
We broke upwards to a fib-based target marked in red, and with surprising accuracy! Given that high, I've made some support projections. Given this small bounce from support, I've made some resistance targets.
It appears the first trend line needs to be broken in order to test the fib retracement resistance (two red lines near top of lower purple box). The box is a clone to show the size of the last retracement upwards (in this leg down). Interestingly enough, the fibs and box clone and lower diagonal trend line (now red) all line up in the 44.36 to 44.56 area.
I have marked other support and resistance found through similar methods. If we fail to break through these first trend lines, it could be a quick move to 41.00 area (and perhaps beyond, though I have yet to chart those targets). I'm analyzing this merely as an inverse market to USDCAD, since that currency pair is looking rather short at the same moment this oil chart has already bounced from the support.
As always, just wanted to share a "road map", not necessarily a trade. There are dozens of trades to be found between now and "then", depending on how you look at things. Cheers.
We broke upwards to a fib-based target marked in red, and with surprising accuracy! Given that high, I've made some support projections. Given this small bounce from support, I've made some resistance targets.
It appears the first trend line needs to be broken in order to test the fib retracement resistance (two red lines near top of lower purple box). The box is a clone to show the size of the last retracement upwards (in this leg down). Interestingly enough, the fibs and box clone and lower diagonal trend line (now red) all line up in the 44.36 to 44.56 area.
I have marked other support and resistance found through similar methods. If we fail to break through these first trend lines, it could be a quick move to 41.00 area (and perhaps beyond, though I have yet to chart those targets). I'm analyzing this merely as an inverse market to USDCAD, since that currency pair is looking rather short at the same moment this oil chart has already bounced from the support.
As always, just wanted to share a "road map", not necessarily a trade. There are dozens of trades to be found between now and "then", depending on how you look at things. Cheers.
