Finally, the Golden crossover pattern is visible clearly on the weekly chart. The last time the same pattern was developed was in April 2018, and the pattern stayed alive until March 2020. An interesting factor is we are on the final wave higher. How far can it stretch?
I believe readers don’t require any introduction to the above bullish pattern. Golden crossover- the mega bullish pattern is underway on the weekly chart. This suggests dip buying is an opportunity, and dips will be shallowed.
In simple, the above chart suggests further upside for oil. At a higher time frame, the price requires to close above 200MA on a monthly basis.
The current daily chart pattern resembles the same pattern witnessed between Jan-Sep 2018. In the near term, we are looking at $79 and $82, as per the A-B-C pattern shown below. This view will be truncated if the price loses $64 on a closing basis.
The price has been supported at $64 levels in recent sessions, and a break below may pave the way for lower prices to $57.
On the upside, the near trend is supportive with the above given positive signs, but the price needs to take out the 1st resistance located at above here $75 exists.
Apart from the technical factor, Hurricane Ida and the production shutdown in Libya are the factors supporting the oil price amid signs of supply pressure.
Prices have been rising as the US oil industry struggles to get back on its feet following Hurricane Ida, ANZ reported.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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