On November 11th, USOIL cleanly rejected a psychological resistance while bouncing off the $43.00 level. Then the price went down, and on the pullback up, cleanly rejected the 23.6% Fibonacci retracement level at $42.17. There was an attempt to break above this resistance, although only a spike has been produced, without a confirmed breakout on the 4-hour timeframe.
The spike has reached a $42.44 high, suggesting that it might be the key level to watch in the near future. And as long as the price remains below, the probability will remain in favor of the downtrend. The downtrend could be pretty sharp and fast because the downside target is located as low as the $36.00 psychological level. It is confirmed by two Fibs, 23.6% and 527.2% Fibs applied to the last wave to the upside.
Besides, the support corresponds to the average-price downtrend trendline, implying that the downside target could be tested by November 2, which is just a few weeks away. And this is the reason why this potential downside move could be very fast and strong.
In regards to the upside, only a daily break and close above 42.44 can invalidate a bearish forecast, in which case, buyers are likely to step in and push the price higher, at least towards the $44.00 resistance.
Key support levels: 41.00, 40.00, 36.00
Key resistance levels: 42.17, 42.44, 43.00
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
The spike has reached a $42.44 high, suggesting that it might be the key level to watch in the near future. And as long as the price remains below, the probability will remain in favor of the downtrend. The downtrend could be pretty sharp and fast because the downside target is located as low as the $36.00 psychological level. It is confirmed by two Fibs, 23.6% and 527.2% Fibs applied to the last wave to the upside.
Besides, the support corresponds to the average-price downtrend trendline, implying that the downside target could be tested by November 2, which is just a few weeks away. And this is the reason why this potential downside move could be very fast and strong.
In regards to the upside, only a daily break and close above 42.44 can invalidate a bearish forecast, in which case, buyers are likely to step in and push the price higher, at least towards the $44.00 resistance.
Key support levels: 41.00, 40.00, 36.00
Key resistance levels: 42.17, 42.44, 43.00
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice