These developments suggest that while there may be short-term support, the outlook for both oil and natural gas remains cautious.
USOIL is trading at $77.22, down 0.09%, but the setup suggests a potential bullish reversal. The price is finding strong support near $77.24, where the upper trendline aligns with the formation of both a doji and a hammer candle—both typically signaling a reversal.
The 50-day EMA at $77.09 is also providing additional support on the 4-hour chart, reinforcing the likelihood of an upward move.
Immediate resistance levels to watch are $78.59, $80.18, and $81.43. If the price holds above the pivot at $76.93, we could see a continuation of the uptrend, but a break below could trigger sharp selling.
UKOIL is currently trading at $79.94, down 0.06%, but the technical setup suggests a potential upside. Similar to WTI crude, Brent oil is finding support near the $79.95 level, which is reinforced by the 50-day EMA at $79.86.
The formation of doji and hammer candles around this area indicates that selling pressure may be waning, with bulls potentially ready to take over.
However, the recent breakout from an ascending channel around $81 has turned that level into a significant resistance point, with additional hurdles at $82.65 and $84.20.
If prices hold above the pivot at $79.73, we could see a bullish continuation, but a break below could lead to further selling.
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.