USOil (WTI) Breaks Out Above Key Level 72.430

Market Analysis – January 3

USOil dropped below the demand level of 72.430 in September, initiating a prolonged bearish phase. Apart from an impulsive rally in October that temporarily pushed above this level before retracing, the price largely remained suppressed. Recently, USOil has executed a significant breakout above this resistance, suggesting the potential for a bullish continuation.

USOil Key Levels

Demand Levels: 67.190, 62.540, 57.920
Supply Levels: 72.430, 78.420, 83.290

USOil Long-Term Trend: Bullish

Since October, USOil has consistently formed lower highs while maintaining the critical support level at 67.190. This price action formed a descending triangle, a structure that, despite its bearish connotations, preceded a bullish breakout.

In December, USOil surged past the triangle’s resistance line, followed by a retest that confirmed the breakout. This move, accompanied by strong bullish momentum, pushed prices beyond the key 72.430 level, signifying a shift in market sentiment and indicating a potential bullish trend.

USOil Short-Term Trend: Bullish

On the 4-hour chart, the Moving Average (MA) with a 9-period setting acts as dynamic support, helping sustain the upward momentum during pullbacks. The Moving Average Convergence Divergence (MACD) indicator also reinforces the bullish outlook, with its upward slope signaling continued buying strength.
With the current bullish structure in place, USOil is anticipated to rally toward the next resistance level at 78.420. Traders may leverage forex signals to optimize entry points and manage positions effectively during this potential upward movement.

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