we anticipate a long term buy for crude oil based on the following analysis of crude oil which is an amalgamation of both fundamental technical analysis.
WTI crude oil continues its upward trajectory, with hourly prices testing the upper bounds of the ascending channel. If the short-term ceiling holds, prices could still experience a rapid pullback.
The 38.2% Fibonacci retracement level stands at $80.02, with larger pullbacks potentially reaching the 50% level at $79.51, followed by the 61.8% level at $78.99 near the channel bottom and the 200-day SMA dynamic inflection point.
The stochastic oscillator dropping from overbought territory indicates rising selling pressure, with room for oscillators to decline further before reflecting bearish exhaustion, which suggests that the correction could persist until such exhaustion is observed.
The RSI is also trending downward, indicating that crude oil prices may follow suit until oversold conditions are met and oscillators rebound.
However, the overall structure shows the 100 SMA above the 200 SMA, confirming that the path of least resistance remains upward, or that support levels are more likely to hold than break. In this scenario, oil prices may continue to rise toward the swing highs around $81.69 or higher. In terms of trading strategy, it is recommended to buy the dips.
ENTRY ; 80.00
tp 85
sl 78.80
risk reward ratio ; 120;500 (approximately 5 times more reward).
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WTI crude oil continues its upward trajectory, with hourly prices testing the upper bounds of the ascending channel. If the short-term ceiling holds, prices could still experience a rapid pullback.
The 38.2% Fibonacci retracement level stands at $80.02, with larger pullbacks potentially reaching the 50% level at $79.51, followed by the 61.8% level at $78.99 near the channel bottom and the 200-day SMA dynamic inflection point.
The stochastic oscillator dropping from overbought territory indicates rising selling pressure, with room for oscillators to decline further before reflecting bearish exhaustion, which suggests that the correction could persist until such exhaustion is observed.
The RSI is also trending downward, indicating that crude oil prices may follow suit until oversold conditions are met and oscillators rebound.
However, the overall structure shows the 100 SMA above the 200 SMA, confirming that the path of least resistance remains upward, or that support levels are more likely to hold than break. In this scenario, oil prices may continue to rise toward the swing highs around $81.69 or higher. In terms of trading strategy, it is recommended to buy the dips.
ENTRY ; 80.00
tp 85
sl 78.80
risk reward ratio ; 120;500 (approximately 5 times more reward).
Follow us for such market related updates contents and news
boost us for increasing our reach to more people.
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