USOIL broke out from the past 10yr old trendline in February and after giving a retest it has been moving smoothly on the upside now what next??
USOIL registered it’s top in 2008 at $147 and after that it has been going down only with Lower High Lower Low in place and in April we all saw the Negative prices of crude oil which means that the Structure of LH LL was quite strong but recently it has triggered the LH and LL by closing above $26.
If USOIL keeps on racing with this pace we might see $100+ soon on the charts [Technical View]. But as of now it is near a very long term supply area and Fib resistance zone [0.5-0.618] so in the coming weeks we are estimating consolidation near this area only as when it touched the zone bears immediately tried to crushed the bulls and USOIL was down by 10$ and a very fast recovery is seen on the charts by the Bulls.
If we manage to close above the zone on monthly basis very extended targets will be opened up for USOIL for a bearish view as of now no reversal sign is seen on the charts overall trend looks quite strong but the question is that will it sustain as USOIL was in a very long duration Bear Market from July 2008 to April 2020.
July 2008 High- 147.27.
April 2020 Low- 0.01.
Disclaimer- This post is written for educational purposes only kindly consult your financial advisor before making any decisions.
PEACE.