USOIL Bulls Eye Breakout – Can Momentum Carry It to $64The 4-hour chart of USOIL shows a market that has recently experienced a sharp decline, followed by a consolidation phase near a key support level. This key support zone is clearly defined at 55.21 USD, where the price found strong buying interest and bounced back up. From there, the market started to climb, attempting to form a potential short-term bottom.
The price is now approaching a previous trendline, which used to act as support during the uptrend and is now being retested as resistance. This retest area overlaps with horizontal resistance at around 60.00 USD, making it a critical decision zone. The two red arrows in the image mark failed attempts to break higher, indicating sellers are still active at this level.
If the price manages to break through this resistance with strength, the next likely objective is Target 1, set at 64.76 USD. This level coincides with the prior support that was broken during the selloff and could now act as a strong resistance. Beyond that, Target 2 at 72.44 USD marks a major resistance zone from which the last downtrend began.
From a trade setup perspective, the chart suggests a bullish opportunity:
The entry is near 59.98 USD, just above the short-term consolidation area, ideally after a breakout.
The stop loss is placed just below the recent swing low, at around 57.82 USD, providing room for volatility without exposing the trade to unnecessary risk.
The take profit is positioned at 64.76 USD, giving this trade a clear structure with a risk-to-reward ratio of about 1:3.75, which aligns well with strong risk management principles.
Additionally, the MACD indicator at the bottom supports the bullish bias. It shows a recent crossover of the MACD line above the signal line, with a rising histogram—indicating building upward momentum.
In summary, this chart presents a well-structured bullish setup with a favorable risk-to-reward ratio, clear entry and exit levels, and supporting momentum signals. However, the region around the trendline retest remains crucial. A strong close above this zone would confirm the breakout, while another rejection could signal the need for caution or reevaluation.
