USOIL, a bottom formation. USOIL / 1D
Hello traders, welcome back to another market breakdown.
Crude Oil traded lower earlier in the week after a small pullback bear trend.
The bears got 3 pushes down, forming a wedge pattern.
They want a retest of the June or May lows, followed by a breakout below.
The bulls see the current move down simply as a bear leg within a trading range.
They want a reversal from a wedge bull flag (Oct 6, Nov 16, and Dec 13) and a higher low major trend reversal. They hope to get a retest of the September high.
They will need to create consecutive bull bars closing near their highs, trading far above the resistance to increase the odds of higher prices.
Crude Oil remains in a 71-week trading range. Traders will Buy Low, Sell High in trading ranges until there is a breakout with sustained follow-through buying/selling.
At the moment, the market is trading near the lower third of the trading range which is the buy zone.
Trade safely,
Trader Leo
