The past weeks have been a very volatile period for the oil. We saw the oil dramatically drop approximately 730 pips in a space of 2 weeks. In our previous post(https://fxsits.com/texas-oil-finds-resistance/). We wrote about where we thought price was headed after failing to break past the 2020 high.

Oil H4 chart 16 September 2020
XTIUSD H4 chart 16 September 2020

In the chart we see how far the oil price has dropped. The oil has found support at level 37.83 .This level was lower than what we projected in the previous post. We tend to ask ourselves this question. Is this level truly a strong support level and will we see price soar bullish again ? Our analysts believe that the oil market still needs more time before we could possibly see a steady bullish move.

Oil daily chart 16 September 2020
XTIUSD daily chart 16 September 2020

For long term traders this could possibly an opportunity to get oil prices at a very cheap level however, bear in mind that the oil swaps could be another factor to consider. Because the Oil dramatically dropped and managed to find support at level 37.83 .For now we could at least assume that this level could be an important indicator of where price could be headed. If price breaks bearish below level 37.83 we should expect the worst. For more information on entries and exits join our smart signals plans

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read the risk warning before deciding to trade the markets.

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