We last reported on the oil price action on the 12th of November. In that post we mentioned the likely hood of price breaking past its higher high. Which was previously set at level 43.83 .Fast forward into today’s price action. We can see price has long broken past that level and now trades comfortably above it.

Oil Daily chart 10 December 2020
XTIUSD Daily chart 10 December 2020

If we take a look at the charts. You will notice how the oil price action broke past level 43.83 and traded to its new higher high at level 45.99 before retracing and finding support at level 43.83 .Now with that said price has set its new higher high at level 46.69 . It at this level where price currently hovers around.

Possibilities are we could see a new higher high being formed. Now with price currently trading at level 45.74 .You can see we are currently a few pips away from this high. On the contrary , if price fails to break the new higher high we could see price drop bearish and test level 43.83 . IF this level is strong we could see price find support at this level.

Oil H4 chart 10 December 2020.PNG
XTIUSD H4 chart 10 December 2020

A move past this level could expose the lower levels such as 41.58 and 39.30 .The question we ask now is whether this true bullish price action. If so how far could we trade the pair in order to maximize profits. The best solution now is to wait on a proper entry signal in order to be part of this move.

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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