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Oil Back at Key Support Who Will Win This Battle?

August 3, 2022
by Joseph Jeffriess, Market Analyst

Hi all, thanks for checking in for Wednesday’s video analysis on oil.

Once again, we find ourselves back at key support. This level has stood since March, and till today sellers haven’t been able to break through this level. For the last two sessions, sellers have tried and failed at breaking $95.20 support, but the question now is, do buyers still have the numbers to defend a new assault?

Monday saw a strong move down by sellers, but they continue to be blocked at support. Things above are not much clearer as resistance continues to look firm from $101-$102.

Our question today is will we see a new break lower or will support hold, and with price now starting to be squeezed, could this become a defining point that continues the current downtrend or sprouts a new reversal?

One thing I didn’t cover in today’s video is the danger of breakout selling at this point. The current point looks as good as any for a bear trap after a false breakout out lower, as we have already seen one in July.

Regardless of the breakout direction, we see it might be a good idea to wait for a new LH or HL to gauge that the move is valid and won’t get sucked back into the range.

Thanks for watching and reading. We hope you enjoy the rest of your day.

Oil Analysis Video

 

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