Crude Oil Bullish Trend Intact - Will We See $75?
Good evening traders,
After we had so much of fundamental outcome for oil, I thought of making a short analysis on it.
Now, you can see that oil is in an intact uptrend. An easy definition of an uptrend is when the market makes higher highs and higher lows like oil is doing. I marked the higher highs and highs lows with green boxes.
After oil breaking its resistance at around 69.21, it became now new support. In most cases the market's pullback to their respective former resistance area after breaking it to the upside impulsively. That is what I am also expecting now. It can be a possibility that oil pulls back to is support area if 69.77-69.21 to test also the rising trend line.
You can see in the past that the trend line was respected by the market and continued the rally. With the fundamental front supporting this view. I am confident in oil to continue its rally to the upside to at 75. But we need to understand that markets have a trending phase and a correction phase which means it will not move in one straight line up. Let's recap the 2 possibilities.
2 possibilities:
- First one is the black one, this is my main view (drawn in the chart) we could see a short-term pullback to the rising trendline before the next move higher can be taken place.
- Or the second one (orange line) it denies the pullback lower and breaks higher without any significant correction the 71.95 high continuing the rally.
Conclusion: Short-term I am expecting a move lower but in the midterm, I am expecting Oil to rally.
View will invalid once it has a daily close below the rising trendline
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.
After we had so much of fundamental outcome for oil, I thought of making a short analysis on it.
Now, you can see that oil is in an intact uptrend. An easy definition of an uptrend is when the market makes higher highs and higher lows like oil is doing. I marked the higher highs and highs lows with green boxes.
After oil breaking its resistance at around 69.21, it became now new support. In most cases the market's pullback to their respective former resistance area after breaking it to the upside impulsively. That is what I am also expecting now. It can be a possibility that oil pulls back to is support area if 69.77-69.21 to test also the rising trend line.
You can see in the past that the trend line was respected by the market and continued the rally. With the fundamental front supporting this view. I am confident in oil to continue its rally to the upside to at 75. But we need to understand that markets have a trending phase and a correction phase which means it will not move in one straight line up. Let's recap the 2 possibilities.
2 possibilities:
- First one is the black one, this is my main view (drawn in the chart) we could see a short-term pullback to the rising trendline before the next move higher can be taken place.
- Or the second one (orange line) it denies the pullback lower and breaks higher without any significant correction the 71.95 high continuing the rally.
Conclusion: Short-term I am expecting a move lower but in the midterm, I am expecting Oil to rally.
View will invalid once it has a daily close below the rising trendline
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.
Comment:
Update:
Comment:
Update 2: