The USOil index has recently made a decisive move into bullish territory, breaking out from a key resistance zone and an overarching trendline. After this breakout, the price retraced to the zone for a retest, reinforcing the current upward momentum.
A double bottom pattern signaled a potential reversal, with a failed low observed on October 1. The key level at 72.500, which previously acted as resistance on September 24, was breached along with the descending trendline, confirming a bullish breakout. This USOil price movement saw an 18.16% gain within five days, eventually pulling back upon reaching 78.420 to retest both the trendline and the 72.500 zone, creating a strong bullish confluence.
The MACD (Moving Average Convergence and Divergence) indicator shows increasing bullish momentum, as evidenced by the growing histogram, while the RSI (Relative Strength Index) confirms a strong uptrend, curving positively above the 50 level.
USOil Short-Term Trend: Bullish
The bullish trend continued after the retest at the 72.500 confluence zone, with a clear Break of Structure (BOS) confirming the upward price direction. Currently, on the 4-hour chart, the price has retraced to a bullish order block, reinforcing the momentum as it aims for the next resistance at 78.420. Many forex signals point to this level as a critical area for traders to monitor.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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