OIL ($USOIL) 🛢️ | What The Amish Can Teach You About Oil
👁️🗨️Crude Oil's trend is still bullish despite a drop in the broader market that is pulling oil along with almost everything else down with it.
While weak demand is ramping up storage fears (fears should have been quelled by the OPEC+ deal to cut production, but doubts over compliance linger) the overall trend for oil along with the OPEC+ deal itself is still bullish enough to have us looking for support. With that mind, let's take a look at some levels for crude oil.
Support.
The first logical support level is the S1 bullish S/R flip. A retest of this level and then more upside is exactly what the oil bulls want to see. Below that we would have a retest of the mid-to-lows of the previous range at S2. Any support found in S1 or S2 is bullish enough and will likely lead to higher highs being tested.
Below that S1 and S2 bullish continuation range is the S3 S/R flip and major pivot point along with the S4 bullish orderblock both stand to give the bulls another shot at staving off the serious lows made during Oil's crash to beyond zero... although even testing these levels really jeopardizes the uptrend.
Resistance.
The R1 bearish orderblock is the bull's first level resistance if we move higher. This level has already acted as resistance once. The bull's best bet will be drilling through R1 with momentum once support is found.
The next level of interest in terms of resistance is the R2 bearish S/R flip. Once the gap from the previous drop is filled, this becomes the most notable level standing between oil bulls and a sustained uptrend.
Summary.
The bulls have the on-paper OPEC+ deal and bullish price action on their side, while the bears have a pullback in the broader market, OPEC+ fears, and another potential demand crisis on theirs. Currently, however, the bulls have a clearer path to victory, so the levels to watch are those immediate support and resistance levels noted above.
Resources: reuters.com/article/us-global-oil/oil-edges-higher-even-as-u-s-inventory-rise-revives-glut-worries-idUSKBN23H06H + markets.businessinsider.com/commodities/news/oil-price-reaction-investors-fear-a-second-wave-covid-19-2020-6-1029299936 + cnbc.com/2020/06/11/opec-mostly-met-cut-targets-in-may-but-future-compliance-uncertain.html
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While weak demand is ramping up storage fears (fears should have been quelled by the OPEC+ deal to cut production, but doubts over compliance linger) the overall trend for oil along with the OPEC+ deal itself is still bullish enough to have us looking for support. With that mind, let's take a look at some levels for crude oil.
Support.
The first logical support level is the S1 bullish S/R flip. A retest of this level and then more upside is exactly what the oil bulls want to see. Below that we would have a retest of the mid-to-lows of the previous range at S2. Any support found in S1 or S2 is bullish enough and will likely lead to higher highs being tested.
Below that S1 and S2 bullish continuation range is the S3 S/R flip and major pivot point along with the S4 bullish orderblock both stand to give the bulls another shot at staving off the serious lows made during Oil's crash to beyond zero... although even testing these levels really jeopardizes the uptrend.
Resistance.
The R1 bearish orderblock is the bull's first level resistance if we move higher. This level has already acted as resistance once. The bull's best bet will be drilling through R1 with momentum once support is found.
The next level of interest in terms of resistance is the R2 bearish S/R flip. Once the gap from the previous drop is filled, this becomes the most notable level standing between oil bulls and a sustained uptrend.
Summary.
The bulls have the on-paper OPEC+ deal and bullish price action on their side, while the bears have a pullback in the broader market, OPEC+ fears, and another potential demand crisis on theirs. Currently, however, the bulls have a clearer path to victory, so the levels to watch are those immediate support and resistance levels noted above.
Resources: reuters.com/article/us-global-oil/oil-edges-higher-even-as-u-s-inventory-rise-revives-glut-worries-idUSKBN23H06H + markets.businessinsider.com/commodities/news/oil-price-reaction-investors-fear-a-second-wave-covid-19-2020-6-1029299936 + cnbc.com/2020/06/11/opec-mostly-met-cut-targets-in-may-but-future-compliance-uncertain.html
Hit that 👍 button to show support for the content and help us grow 🐣
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