USOil (WTI) price has recently shown significant sensitivity to a bearish order block, which has played a crucial role in halting its upward momentum. As the price attempted to rise, it faced strong resistance at the 76.90 level, a key bearish order block formed during its previous decline. This resistance has effectively stalled further gains, emphasizing the importance of this level in the current market structure.
The USOil price has been moving within a bearish parallel channel on the daily chart. Recent tests of the channel’s lower boundary led to the formation of a double bottom pattern, which often signals the potential for a trend reversal. This suggests that a new uptrend may be on the horizon.
The lower bands of the Bollinger Bands have provided essential support for the recent price rise. However, the upward push from the channel’s lower trendline met resistance at a bearish order block. This bearish order block, formed on August 16th, continues to act as a significant barrier to further upward movement.
USOil Short-Term Trend: Bearish
On the daily chart, the bearish order block appears as a strong supply zone on the 4-hour timeframe. Traders who entered long positions during the recent support level test should consider taking partial profits, as the potential to break through this supply zone remains uncertain. The best forex signals often highlight the importance of securing partial profits in light of the market’s unpredictable nature.
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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