The USOil market direction turned bearish following the formation of a head and shoulders reversal pattern in April. After a significant price decline of approximately 15%, buyers have regained control, supported by the critical demand level at 72.40.
The Relative Strength Index (RSI) indicated an oversold market in April, prompting a market reversal. The last significant bearish move in the downtrend emerged from a retest of the key zone at 80.60 in May. This move formed a swing high at the supply zone, continuing the price selloff.
Upon testing the demand level at 72.40 in June, the RSI again indicated an oversold market. This presented a strong entry opportunity for long positions, as identified by leading forex signals providers. Shortly after this test, the price surpassed the swing high of the last bearish move, establishing a clear shift in market structure towards a bullish trend. This shift signals increasing buyer confidence and the potential for sustained upward movement.
USOil Short-term Trend: Bullish
The Smoothed Heikin Ashi Candles, which have retested above the 4-hour and daily candles, now display a consistent green hue, further indicating a bullish trend. This technical formation suggests that the upward momentum is likely to continue, with the price expected to soar to the next significant supply level at 87.50 in the long term.
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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