The USOil market finds itself at a critical juncture. Price momentum has stalled above a key swing high at $79.00, suggesting potential for continued upward movement. However, as the price ascended into a supply zone marked by a bearish order block, it encountered significant resistance. This resistance has led to a pullback from the region, highlighting the influence of sellers within the supply zone.
The supply zone around $80.20 presents a formidable barrier to further price advancement, supported by the presence of a fair value gap. Some analysts may interpret the push above the $78.00 swing high as a liquidity sweep, potentially triggering short positions from the supply zone at $80.20. Conversely, others may see it as a precursor to a broader bullish trend. The test of the supply zone coincided with the Williams %R indicator reaching overbought territory, reinforcing the possibility of a downward shift.
In such scenarios, patience is essential. Future price action will provide clearer insight into the prevailing trend. A double break of structure to the upside would offer a stronger indication of a sustained uptrend. A break above the $83.00 level would further confirm this bullish outlook.
USOil Short-Term Trend: Bullish
In the short term, the market remains bullish, but the price is currently retracing after encountering resistance at the supply zone of $80.20. The significant decline following this test suggests that sellers are actively defending this level. Observing how the market unfolds in the coming sessions is crucial for generating the best forex signals.
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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