Today our focus is on USOUSD (Oil) as price finished yesterday’s session with a commanding reversal bar. After trading over 2% lower, buyers not only took hold but ended the session with a solid 3.83% gain.
Yesterday’s session appears to show that buyers are still very active, and for now, price is not comfortable trading below 114.77. The move maintains the current trend, but we want to see further confirmation to suggest that the trend is set to continue. Also supporting price are the moving averages and CCI. The moving averages are crossed to show buyers are in control of the average price (increasing( and the CCI remains in the bull zone above the 0 line.
If buyers can reverse today’s selling and beat 119.50 minor resistance, which also holds yesterday’s high, we will then be looking for the current trend to continue with a possible new test of 122 or above.
A failure to break yesterday’s high and minor resistance in today’s session could be seen as a small warning to buyer strength.
Please check out or oil update video just below the chart.
Oil analysis video