Facts:
- The previous 3 attempts to overcome the 55-56 level ended in failure.
- The RSI(14) indicator shows a value below 50 (47.5), indicating moderate overbought conditions.
- The price is below the middle Bollinger band.
- The price is within the 78.6 – 100 Fibonacci retracement range of the last upward wave.
Trade: LONG position on OIL.WTI at market price.
- Target: TP – 65
- Stop: SL – 55
OIL.WTI (D1)
Source: xStation5
OPINION: The oil price chart shows three unsuccessful attempts to overcome the 55-56 dollar level. The market clearly does not accept a lower price, and buyers are defending the resistance, waiting for conditions more favorable for growth. This creates a triple bottom formation, the realization of which will result in an upward technical correction.
Methodology and assumptions:
The recommendation is based on technical analysis of the OIL.WTI chart, particularly the RSI indicator, Fibonacci levels, and Bollinger bands.
Target level: Take profit 1 results from the resistance zone formed above the FIBO 61.8 retracement, the presence of the EMA200 average, and the average range of movement of the last 4 upward corrections. The defensive stop loss order is set below the 55.50 dollar level, the breach of which would negate the realization of the technical formation.
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