Oil Technical Analysis And Short Term Forecast

Hi Traders! Oil technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!

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Oil D1(Daily) Chart Analysis – Strong Support Zone Breakout, Lower Lows

On the daily chart, we had a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it, we may consider this as  evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. Also, we could see that the price which is moving lower has created lower lows based on the MACD indicator, which is a sign of gaining momentum towards the bearish side. So everything looks good here for the bears and we may now move down to one timeframe lower and look for evidences supporting this short term bearish view.

 

 

 

Oil H4(4 Hours) Chart Analysis – Strong Bearish Momentum, Two Key Resistance Zones

On the H4 chart, we could see that currently we have a strong bearish momentum here as well. Also while measuring this strong bearish move we have two key resistance zones that has formed. The first key resistance zone is formed based on the 38.2%(61.32) – 50%(63.35) Fibonacci retracement levels of the strong bearish move. The second key resistance zone is formed based on the 61.8%(65.38) Fibonacci retracement levels of the strong bearish move. Until both these key resistance zones shown in the image below (marked in red) holds my short term view remains bearish here and I expect the price to move lower further.

 

 

Technical Analysis & Forecast Summary

Oil D1(Daily) Chart Analysis 

• Strong Support Zone Breakout, Lower Lows

Oil H4(4 Hours) Chart Analysis 

• Strong Bearish Momentum, Two Key Resistance Zones

 

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