USOIL Potential Support & Resistance Areas
This 3 day charts shows basic retracement levels, percentage increase levels from the current low and angle relationship based support & resistance areas. So far, the oil market saw a sharp surge from the low $42, a longterm demand area, and currently it seems there's still some room for further upside. This move up can be regarded as a retracement leg within a bigger downtrend, the common retracement level being 38.20%, which falls around the $55 mark. However, there is an inverse head and shoulders pattern also noticeable on higher timeframes, so buyers might push for the 61.80% after taking some profits. Buying into weakness seems reasonable for now.
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As shown in the chart, oil tested the 1/3 point of the range (5385), which happens to be around the high (5454) of prior consolidation range (5454-4939) that it went through on its way down. In addition, the 25% increase point (5292) from the current low (4234) also happens to be around the same area. The current higher timeframe price action can interpreted as an accumulation range with a supply test beyond the $50 mark that was bought eagerly. If the $50 psychological level holds, it can be inferred that the supply test that took place from 14th Dec 2018 through 9th of January (covering the sub $40 range), will be the area where institutional strong hands will be sitting during the upcoming couple of quarters at least. All in all, look for clues at the $50 psychological mark. If it holds and manages to close the higher timeframes above, higher odds of a mark up phase which might see the price jump into the $60s.
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*covering the sub $50 range
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The shadow near low $51 area is a good sign for further upside
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Some reaction upon meeting the minor bear angle apparently.
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Approaching the major bear angle, it seems the 25th or the 26th of February the angle should touch. Looking for bearish PA for a fading short setup confirmation.
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Turned down leaving 10 ticks short from the major bear angle.