The above chart is USOIL on the 4hour and this should be the primary focus for the next two weeks. As stated in the last breakdown USOIL made a V SHAPE recovery which was bullish and sellers have failed to make a 100% retracement. We now have a gap close to the important zone of $104.60 and we can bet if price comes back up to this level to fill the gap it will break through and create that fake out scenario BUT price should go to the 78.6 fib which lines up very close to liquidation region which would be my ideal zone to short from.
KEY ZONES
• $111.60 - Swing high
• 107.90 - Bearish below but bullish above
• $104.60 - Significant support/resistance zone
• $92.00 - Short below with strong closes below
• $90.60 - Swing low
• $86.90 - Next swing low target
So, we have covered USOIL and we know it isn’t dropping to the very lows anytime soon and this bearish move we are seeing now is simply the correction from APRIL 2022. Now I’m not saying USOIL is bearish overall but it is in the short to midterm but we know that with the current economic state and conflict in Europe that price can go anywhere hard and fast. Ideally as USOIL is now bearish I would be shorting and now I wouldn’t be interested in a long until we have seen that $76-$74 region (Remember to trade the trend).
USOIL could absolutely fall off to $86 from this current location but as you can see, I have more reason to believe we will have one more push up to wipe out the highs.
KEY ZONES
• $111.60 - Swing high
• 107.90 - Bearish below but bullish above
• $104.60 - Significant support/resistance zone
• $92.00 - Short below with strong closes below
• $90.60 - Swing low
• $86.90 - Next swing low target
So, we have covered USOIL and we know it isn’t dropping to the very lows anytime soon and this bearish move we are seeing now is simply the correction from APRIL 2022. Now I’m not saying USOIL is bearish overall but it is in the short to midterm but we know that with the current economic state and conflict in Europe that price can go anywhere hard and fast. Ideally as USOIL is now bearish I would be shorting and now I wouldn’t be interested in a long until we have seen that $76-$74 region (Remember to trade the trend).
USOIL could absolutely fall off to $86 from this current location but as you can see, I have more reason to believe we will have one more push up to wipe out the highs.
