USOIL: Support area @ 47.63 - 47.17 is worthy of your attention

4 thg 3, 2020

USOIL retraced almost exactly 45% of the previous drop, and tried 3 times to overcome the the 48.60s with no success. Now we can draw 2 trend lines up from the bottom seen immediately after this week's open. The 2 trend lines seem to be very close to the top & the bottom of the MA support band on the hourly frame. These 2 MAs are @ 47.63 & 47.17. Both of these levels deserve attention. Once (& if) we start trading below 47.63 we should keep an eye on the next level (47.17), and if this level also gives way, another dive should be expected. In this case, I would not be surprised to see 46.00.

On the other hand, in case the bulls can overtake the 50% retracement @ 49.12, the bearish bias should be put on hold, at least temporarily.

Munther T. Marji CMT