We last spoke about the the oil in July. During that period we saw price trade at level 74.35. Since then we saw sellers take control of the market. The market drop during the month of August to level as low as 61.89 . It is at this level where we saw sellers struggle to break past as buyers regained control of the market.

oil H4 chart 2 September 2021
XTIUSD H4 chart 2 September 2021

Level 61.89 acted as a very strong support level. The engulfing bullish candle proved to be a strong signal for buyers to push the market back up. Today price trades at level 70.26. This is after price successfully foundĀ supportĀ at level 66.90 and moved past level 69.56. Our analysts believe that price could possibly trade to level 74.18 and possibly higher. We’ve seen good price action on the Oil.

If the we see the daily close as a bullish candle. Then we can expect to see price trade to a new higher high. An entry now or after the close possibly put buyers in the good position to trade the market bullish.. However we should be weary of level 74.18 incase it acts as a resistance level.

oil Daily chart 2 September 2021
XTIUSD Daily chart 2 September 2021

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 risk warning before deciding to trade the markets.

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