USOil (WTI) Market Structure Turns Bullish

Azeez Mustapha

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Market Analysis – July 1


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.


USOil Key Levels

Demand Levels: 76.90, 72.40, 69.10
Supply Levels: 87.50, 94.50, 95.00

USOil (WTI) Market Structure Turns BullishUSOil Long-term Trend: Bullish

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 (WTI) Market Structure Turns BullishUSOil 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.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

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