Technical Analysis Overview
On the 1H timeframe, USOIL has recently tapped into a significant Demand Zone (blue box) located around the $86.00 – $88.00 area. This zone has acted as a strong liquidity pool, and the price is showing signs of a bullish reversal after mitigating the Weak Low.
Key Insights & Market Structure:
Liquidity Sweep: The recent dip successfully swept the sell-side liquidity, followed by a minor CHoCH (Change of Character) on lower timeframes, signaling that buyers are stepping back in.
Supply/Demand Dynamics: Price is currently trading above the immediate equilibrium. I expect a brief consolidation or a small pullback to the $90.00 level (the red minor supply-turned-demand) before the expansion continues.
Primary Target: My main objective is the Strong High and the major Supply Zone (red box) situated around $100.00 – $102.00. This area remains unmitigated and represents a high-probability target for profit-taking.
Current Momentum: As long as the price maintains its structure above the $86.00 support, the bullish bias remains intact.
Trading Strategy:
Bias: Long (Bullish)
Entry Confirmation: Looking for a sustained hold above $91.30 to confirm the next leg up.
Target (TP): $100.00 – $101.50
Invalidation: A decisive close below the “Weak Low” at $85.00 would cancel this bullish outlook.
Risk Warning: Crude Oil is highly volatile due to geopolitical factors. Trade with caution and strictly follow your risk management plan.