USOil Closes an Already Existing Gap

Market Analysis – April 23

US Oil anticipated retest of the lower border of the pennant was dashed with a gap above the chart pattern. The price appeared above the range upon reaching the lower trendline on the 24-hour chart. The market is currently correcting to fill up the gap on the daily chart.

US Oil Key Levels

Demand Levels: 73.200, 66.000, 62.000
Supply Levels: 81.130, 89.000, 92.800

US Oil Long-Term Trend: Bullish

The contention over US Oil prices caused the market to consolidate between the supply level of 81.130 and the demand level of 73.200. The market failed to ascend after testing the supply level of 81.130 four times. The sellers persisted in a breakout. Upon the fifth strike of the support level, a breakout was enforced.
The Bearish breakout was short-lived. The test of the supply level of 81.130 when the Stochastic indicated the market was overbought fostered the breakout. The price dived straight to the oversold demand level of 66.000. The pullback, which was anticipated to create more shorting opportunities, turned into a change of trend with a price hump over the previous high at the 81.130 resistance level.

US  Oil Short-Term Trend: Bullish

The gap on the daily chart is well exposed in the lower timeframe. The market is currently correcting to fill up the gap on the daily chart. The price is expected to correct to 75.50 before the new bullish trend resumes.

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