The WTI Crude Oil ( USOIL ) has been trading within a structured Channel Down pattern since the March 08 market High, following the immense growth after the COVID 2020 demand crisis. We have covered the Higher Lows zones since the November 02 2020 Low (green circle) and the March 23 2021 Low (blue circle) extensively over the past months on the higher time-frames, which is where Oil is trading at the moment.
Basically the price is at the bottom of both the Channel Down and the Higher Lows zone since Nov 02 2020 2021. The bearish sentiment got stronger when the price got rejected exactly on the 1D MA50 (blue trend-line) on August 30 and turned even worse on September 02 when the 1D MA50 crossed below the 1D MA200 (orange trend-line) to form the bearish pattern of the Death Cross. This is the first time we see this formation since February 25 2020!!
This was a huge bearish sign at the past as it preceded the COVID crash. With the Nov 2020 Higher Lows Zone (dotted lines) holding for now, the Death Cross effect may be postponed for the short-term but only if the 1D MA50 breaks, since we have the 1D RSI forming the same bullish break-out pattern as with April 2022, which was the Lower Low formation within the Channel Down that initiated the rebound to the Lower Highs trend-line. A Bullish Divergence can be also seen on the 8H MACD with it being on Higher Lows while Oil has been on Lower Lows since June 22. However it is about to break lower, which will invalidate all the above.
Technically the Channel Down should make a new Lower High within 110.00 - 115.00. A break below it though, should finally test the March 23 2021 Higher Lows zone (dashed lines). Even if we do get that rebound on the short-term, it would be much safer to be positioned systematically with sells on the rallies, as the Death Cross indicates that the long-term trend is gradually turning bearish.
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Basically the price is at the bottom of both the Channel Down and the Higher Lows zone since Nov 02 2020 2021. The bearish sentiment got stronger when the price got rejected exactly on the 1D MA50 (blue trend-line) on August 30 and turned even worse on September 02 when the 1D MA50 crossed below the 1D MA200 (orange trend-line) to form the bearish pattern of the Death Cross. This is the first time we see this formation since February 25 2020!!
This was a huge bearish sign at the past as it preceded the COVID crash. With the Nov 2020 Higher Lows Zone (dotted lines) holding for now, the Death Cross effect may be postponed for the short-term but only if the 1D MA50 breaks, since we have the 1D RSI forming the same bullish break-out pattern as with April 2022, which was the Lower Low formation within the Channel Down that initiated the rebound to the Lower Highs trend-line. A Bullish Divergence can be also seen on the 8H MACD with it being on Higher Lows while Oil has been on Lower Lows since June 22. However it is about to break lower, which will invalidate all the above.
Technically the Channel Down should make a new Lower High within 110.00 - 115.00. A break below it though, should finally test the March 23 2021 Higher Lows zone (dashed lines). Even if we do get that rebound on the short-term, it would be much safer to be positioned systematically with sells on the rallies, as the Death Cross indicates that the long-term trend is gradually turning bearish.
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** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
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👑Best Signals (Forex/Crypto+70% accuracy) & Account Management (+20% profit/month on 10k accounts)
💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!
💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.