Here we are looking at our very simple analysis of US Oil on the daily timeframe.
Price for several months has shown nice downside momentum with price recently stalling at the 42.50 weekly support. Price was rejected from this area with a bullish engulfing candlestick formation which has since led price to break the small counter trendline to the upside.
Price is currently between our 20 & 50 Daily EMA’s.
We would like to be able to see further upside space to enable a long position. Price is currently holding above the daily support of 49.30 however we would like to see price continue through the 54.75 Monthly resistance for a long position. We would like to see price back at the weekly resistance at 59.00.
We would only be looking at a short within this market on the break of 49.30 support.