USOil market has recently confirmed a significant bearish break of structure, signaling an advantage for sellers. The price dropped below the previous swing low of 72.40, reinforcing the ongoing downward trend. This move highlights the continued strength of bearish sentiment in the market.
The long-term outlook for the USOil index remains distinctly bearish. The price demonstrated increased sensitivity after reaching the third test of the bearish trendline on the daily chart. A swing high quickly formed, indicating a bearish reversal as the trendline was touched.
As seen in previous instances when the price approached the trendline, the Smoothed Heikin Ashi candles transitioned from green to red, signaling a bearish reversal. Additionally, these candles have consistently remained above the daily custom candles, underscoring the persistence of the bearish trend.
USOil Short-Term Trend: Bearish
In the shorter timeframes, the price has shown a slight upward movement, with the Stochastic indicator positioned in the overbought region. This upward move is a retracement from the demand level of 72.40 into a daily bearish order block. However, given the presence of bearish order blocks and selling pressure, the downward trend is expected to resume. As a result, the market conditions continue to support bearish forex signals, suggesting the potential for further declines as selling pressure remains strong.
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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