USOil (WTI) Reflects Resistance in Market Consolidation

Market Analysis – November 8

The USOil price has been trapped below the resistance level of 72.430 and the support level of 67.970. Currently, the market is showing bearish reversal signs as the price has reached the resistance zone of the market range.

USOil Key Levels

Demand Levels: 67.970, 62.540, 57.920
Supply Levels: 72.430, 78.420, 83.290

USOil Long-term Trend: Ranging

During the first quarter of the year, a bullish micro trend with higher highs and lows was evident on the daily chart. This ascent was guided by a trendline that broke in March. The USOil price pulled back for a retest, which also tested a major bearish trendline, forming a confluence zone. This set the market back into a bearish trend resumption.

Upon reaching the demand level of 67.970, the price attempted to return to the bearish trendline but failed. The demand level of 67.970 has remained strong throughout the year despite numerous tests. The failure to return to the bearish trendline has kept the price below the key level of 72.430. The Average Daily Index (ADX) reveals a current lack of a distinct trend due to the continuous bounce back and forth between key zones. Currently, the price has reached the resistance level of 72.430 within the market range, and the Stochastic indicator is showing an overbought market.

USOil Short-term Trend: Ranging

At the resistance zone of 72.430, a triple top has formed, indicating a potential fall towards the demand level. The lower highs on the daily chart and the equal lows of 67.970 since the previous year have formed a giant descending triangle, suggesting the market is ready for a breakout.
The USOil market remains in a consolidation phase, with prices fluctuating within key levels. Traders using forex signal should watch for a bearish reversal as the market approaches resistance zones and consider the potential for a breakout from the descending triangle pattern.

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