The USOIL index recently surged into the supply zone at $80.00, encountering significant selling pressure, which triggered a sharp decline. This drop pushed prices down to the $68.00 demand level, where the market briefly saw a bullish recovery. However, the aggressive retracement has raised concerns, as buyers now face the risk of a bearish break of structure, potentially leading to further downside movement.
In September, the USOIL index fell to the $68.00 demand zone, forming a double bottom pattern that initially hinted at a bullish reversal. This led to a short-lived rally, pushing prices up to $78.00.
However, the move was capped at the $80.00 supply zone. Since then, USOIL has been trading below the 9 and 21-period Moving Averages, indicating the continuation of bearish momentum. The Awesome Oscillator reaching zero further confirms this outlook, alongside forex signals suggesting caution.
USOIL Short-Term Trend: Bearish
In the lower timeframes, the market structure remains bearish, posing a threat to the $68.00 demand zone, where the recent bullish shift occurred. A break below this level, particularly under the double bottom, could signal a deeper bearish reversal and amplify selling pressure.
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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