As of now trading around 67 area with speculative sentiment index around 20% hence an upside break out is highly possible targeting the 72+ levels coming weeks . However, considering the trade on the last day of month + price around the range top , You can try putting sell limit orders 100-150 pips above the 67 top although success rate will probably very low as...
The us oil is heading towards 37.00 key level
Long term is at 95 dollar, because the shaved bar on monthly and and morning star formation with a pinbar between the 3 candles
What is your long term target ? react and share
Oil has been on a tear this week and its mainly due to a lot of OPEC/OPEC+ talk. The upside came out on news of production cuts hitting the system shortly and we were anticipating price hitting the $60.00 area or near at least. That target was easily hit this week and now we have to question where could it go from here?
There are two possibilities:
1. Slight bounce from demand zone
2. Formed a rising wedge and a break down occured, however buying pressure remains consistent.
3. If we were to open a short, would prefer to see the price lose below the mini demand structure.
4. If closes higher above the wedge, we can look to long.
*I am more long biased, given how the breakdown of the wedge was quite weak.
USOIL is approaching our first s support at 60.65 (horizontal overlap support, 61.8% Fibonacci extension, 50% Fibonacci retracement) where a strong bounce might occur above this level pushing price up to our first resistance at 67.62 (horizontal overlap resistance, 61.8% Fibonacci extension, 50% Fibonacci retracement).
Stochastic (89,5,3) is also approaching...
1. Pullback to the bear flag created. Good RR ratio.
2. Volume is decreasing on the pullback.
3. Potential double inside bar on the 4 hourly chart.
4. Structure is still holding and candles are unable to close above it.
*Therefore waiting for entry short signal when the lower low of the candle on the 1 hr chart closes below previous low.