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Oil in retreat with an eye on $80.00 levels, September low

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Oil in retreat with an eye on $80.00 levels, September low

  • September was very bullish for the price of oil. After forming a low at 77.56 on August 23, the oil price has initiated a bullish consolidation.

Oil chart analysis

Today’s chart review will be on a four-hour time frame in order to give us a broader overview of USDWTI – oil movements in the previous period, and based on that, we will analyze the future potential trend.

September was very bullish for the price of oil. After forming a low at 77.56 on August 23, the oil price has initiated a bullish consolidation. We started September with the $80.00 level, only to stop at the $94.99 level. In that period, the price of oil jumped by 22.0%. We encounter resistance at the $95.00 level, and the price begins to pull back, making a bearish consolidation and losing support in the EMA50 moving average.

Oil chart analysis

What happened to the price of oil?

In just 10 days, the price of oil fell to the $81.50 level, close to erasing all gains from September. Now, we see a consolidation around the $82.00 level, and we need a return above $84.00 in order to form a new bottom from which we start the continuation of the recovery. If we succeed in this, the next obstacle is the $85.00 level, the previous starting point of the bearish impulse.

A break above would further strengthen the price position for a further continuation to the bullish side. Potential higher targets are $86.00 and $87.00 levels. Additional resistance could be in the EMA50 moving average in the zone around the $87.00 level. It would be of great importance to us if we moved above him, so we could also get his support.

The inability of the oil price to sustain above the $82.00 level of support leads to the continuation of the retreat and the fall to the $80.00 level of support from the beginning of September. There would be an increase in bearish pressure on the oil price to test the previous low of August 23 at the $77.50 level.

The post Oil in retreat with an eye on $80.00 levels, September low appeared first on FinanceBrokerage.

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