*Quick technical analysis of the US Oil commodity price charts*
Here is my “quick charts” technical analysis for the US Oil price markets that I am currently looking to buy in to if a good opportunity arises over the next few trading days.
As always, I will start by listing the 2 main timeframes I am looking at and using to form my bullish bias.
Daily Timeframe Chart – $52 support zone has held strong for a 4th time this year. Multiple bullish daily candle closures over the past week or so and price closed above the daily 50 EMA yesterday.
4 Hour Timeframe Chart – Price has made multiple higher highs on this timeframe over the last 2 weeks and is now trading comfortably above the 4hr 50 EMA.
The daily chart above shows the clear bounce off of the $52 per barrel price support zone with some strong bullish momentum daily candle closures. I am looking to trade price back up to the $60 region buying any lower timeframe dips in price.
The reason I am targeting $60.80 is because of the lower highs on the weekly timeframe that have occurred. There may be significant support at this zone again so it would be prudent to lock in profits there.
On the lower timeframe chart shown above, it is clear to see that the intraday trend is bullish with a nice support trendline drawn.
As always, I am never keen to buy at the highs so I will wait for any price dips on this 4hr timeframe to buy in to the prevailing trend. I will use the Fibonacci Retracement levels, 50 EMA and previous support zones for entry analysis. This should give me the best chance of a good reward:risk long position entry.
I don’t really need a contingency plan for this trade. It is very simple and there should be at least one opportunity to buy in to the current 4 hour trend.
Price may gather momentum very soon and form a lower timeframe flag continuation pattern. If so, I will use this as an entry signal and enter a long position with a tight stop loss for risk management.
All of my flag pattern trading strategy can be found in previous blog posts by clicking on the links below.
DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.