Market Analysis – May 3
USOil offered buy-side delivery of the price in the marketplace since the inception of the year. However, the month of May has changed the tide of the bullish institutional order flow. The parallel channel guiding the upward trend has been invalidated by a bearish breakout.
US Oil Key Levels
Demand Levels: 76.90, 72.10, 70.00
Supply Levels: 87.50, 94.50, 97.50
US Oil Long-Term Trend: Bearish
US Oil trend changed from downward to upward in February. The bearish order block which served as a resistance to price ascent failed. At this point, the super trend indicator hue changed to green signalling a successful bullish market reversal.
The price gradually ascended in a bullish parallel shattering through resistance zones. Three white soldiers appeared in the transition of price from 81.20 to 87.50 resistance level. The Stochastic was already oversold at the reach of this resistance level.
The Supertrend indicator’s hue also turned red clouding the daily candles to signal a descent in price. The Buyers attempted to halt the descent in price. A bounce up of the price is seen at the test of the confluence zone of the bullish order and the demand level of 81.20.
Eventually, the sellers enforced a successful bearish breakout.
US Oil Short-Term Trend: Bearish
The price is crashing consistently on the lower timeframe. The Super trend is bullish. A retracement is anticipated as the Stochastic is currently oversold on the lower timeframe before the price reaches the next support zone of 76.90.
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