XTIUSD

For sometime now sellers have pushed the oil market bearish. These past few weeks we saw oil buyers struggle to regain bullish momentum as the market pulled back. Prices dropped and only managed to find support at level 36.80 .It is at this level that we see bullish price action. Thus, giving us confirmation that this is a strong support level.

Oil H4 chart 5 October 2020
Oil H4 chart 5 October 2020

Looking at today’s chart you will notice how buyers have managed to push price in its original trend direction. The question we ask is whether this is an actual move or just another fake move? We believe an engulfing candle close on the daily time frame could possibly signal a bullish move. With price currently trading at level 38.48 .We think Oil buyers could possibly push the market to level 43.83 .This level is currently our 2020 higher high. however before price gets to this level there are certain areas which need to be broken.

Oil daily chart 5 October 2020
Oil daily chart 5 October 2020

In the H4 chart we clearly see that level 39.97 is our next resistance level. We ask a question. Will price struggle to break past this level? We think that price could find a bit of trouble moving past this level. However, when it does this could leave level 43.83 exposed which is our target level.

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