*A live market update explaining the US Oil charts and trading opportunities*
Good afternoon everyone. I am going to give you a quick update on the US Oil commodity markets and what price has done since I last gave you a technical analysis breakdown of the oil market.
If you didn’t read my previous “quick charts” post technical analysis on the US Oil markets then you can find that by clicking on the link or image below.
As explained, I was and still am predicting continued buying of US Oil over the current days and weeks to take price up to the $60 per barrel region. At the time of posting my original chart breakdown 2 weeks ago, there was a lot of bullish price action to suggest this and I was actively looking for pullbacks in price and intraday sell-offs to buy in.
The chart below shows my original plan of attack.
The 4hr bullish trend was probably the most important timeframe I have been focusing on. The waves of higher lows and that supporting trendline has been giving a lot of buyers confidence.
Let’s look at an updated 4hr timeframe chart.
As you can see, price did pullback in to that bullish trendline and buying zone at around $54 per barrel. I went long slightly above that level but price did bounce and make a new higher high last week almost touching $58 per barrel.
In my opinion this buying and selling is going to continue over the next few weeks and price should give more opportunities to buy in to the bullish intraday trend.
The chart below shows a potential scenario including utilising the existing trendline.
The daily chart below shows some longer term predictions. If the bullish trend continues then price should climb up to at least the $60/$61 per barrel region where there is a previous resistance zone and trendline waiting.
From there, price can break or bounce and this could produce a good trade opportunity in itself. A break of the resistance and trendline might see oil prices start gaining and my eyes would be on the next resistance at $63 and $65.
If resistance holds strong then selling oil back down to support might prove profitable. It is not clear what scenario will occur until price gets there but it is good to have these zones marked on the chart for future reference.
Remember, KEEP IT SIMPLE. Buy the lows and sell the highs by following the trend and you shouldn’t go wrong.
All my technical analysis is done using the TradingView platform. You can get access via the link below.
My preferred broker of choice is IC Markets. Low spreads and trading costs really help long term profitability. A link to their site is 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.