Oil forming a new uptrend?
Hi, and thanks for stopping by for Monday’s video update. Today’s focus is USOUSD (oil). We are looking at oil on its current daily chart and asking if we are seeing the start of a new uptrend.
We all saw last Friday’s fireworks and the effect they had on the USD and risk markets. Oil acted no differently at the start, moving 1.98% lower, but this was short-lived, and buyers came back into the market, cutting losses and closing at a very small gain.
This was a good sign to us as we had been watching the last leg higher from $87.50 – $95.75, which broke out of the downtrend. The previous two days of trade last week continue to paint a bullish picture for oil as we have now seen a retracement and a new HL. Today’s price action so far has continued to catch our attention, as it looks like buyers are trying to get a new move going.
From here, we would like to see a break of Friday’s high and a new move back to test resistance at $95.80 – $96. A break of those resistance points could start suggesting that we have a new short-term uptrend underway.
If we see a new move lower that closes below last Friday’s low, this would be a worry that seller numbers are still very high. A new move below $90 would most likely cancel out bullish momentum in the short term.
We would like to hear from you. Don’t agree or have something else to add? Please feel free to comment.
Oil Analysis Video