USOIL Market Structure Shifts with Three Falling Peaks

Market Analysis: July 22

USOIL price has experienced a bearish shift in market structure, characterized by the price falling below a major swing low on the daily chart. This shift in market structure appears to be driven by a ‘three falling peaks’ pattern noticeable on both higher and lower timeframes.

USOIL Key Levels

Demand Levels: 76.90, 72.40, 69.10
Supply Levels: 84.20, 87.50, 94.50, 100.00

USOIL Long-term Trend: Bearish

USOIL price action has posted three significant lower highs on the daily chart, known as three falling peaks. Each swing high features a smaller reversal pattern. The first high, formed in September, had a double top reversal pattern. The second lower high, formed in April, featured a head and shoulders reversal pattern. The third lower high, completing the three falling peaks, features a smaller three falling peaks pattern, establishing a bearish shift in market structure.

The MACD (Moving Average Convergence and Divergence) indicator on the daily chart shows a price decline following an oversold market. Similarly, the fall of the daily candles below the Moving Average cross (Periods 9 and 21) indicates a price decline.

USOIL Short-term Trend: Bearish

On the lower timeframe, a bearish order block rests at 81.00. A pullback to this bearish order block would be a good setup to generate the best forex signals for shorts, providing the advantage of shorting from a premium price.

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