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Facts:
- The price has moved back above the EMA200 level.
- The EMA100 remains above the EMA200.
- RSI (14) is 52.4.
- The low from the last 5 sessions is higher (~11%) than the monthly low at around ~70 USD.
Recommendation : Long position (buy) on OIL at the market price.
- Target price (Take Profit; TP): 95.5 USD
- Stop Loss (SL): 78 USD
OIL (D1)
Source: xStation5
OPINION:
A normalized RSI together with a forming uptrend (see: green circles) creates an opportunity to trade for higher oil prices. The bullish sentiment is further confirmed by the price returning above the EMA200. The target direction for buyers should be the upper boundary of the expanding ascending trend channel (orange).
Methodology and assumptions:
- The recommendation is based on technical analysis of the chart, in particular EMA moving averages and Fibonacci levels.
- The target level was determined based on Fibonacci levels.
- The protective stop loss order was set based on a favorable risk-to-reward ratio and based on a Fibonacci level.
