For sometime now we’ve seen the oil maintain a strong and consistent bullish run. The oil and been trending bullishly since the begin of this year. Just a few days ago we saw the oil trade at its higher high set at level 67.71 before pulling back bearish. Because the oil retraces after hitting higher high . We ask how far will price drop?

Oil H4 chart 10 March 2021
XTIUSD H4 chart 10 March 2021

In the chart you will see that price currently trades at level 63.64 . This level is set to be our Support/resistance level as price previously to break past the level. Because price trades here will it find support before returning bullishly ? This level could prove to be important as it could tell us where price is headed.

If price does manage to break past this level, then we could see level 61.8.3 being exposed. Possibilities are price could probably find support at this level. Thus this could be a cheaper entry to trade the pair in its trend direction , which is bullish.

oil Daily chart 10 March 2021
XTIUSD Daily chart 10 March 2021

Our analysts believe that the oil retraces due to economics events currently occurring in Texas which happens to affect it movements whether bullish or bearish.

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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