Baxia Markets
July 28, 2021

Could US Oil break the resistance at $72.32?

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The recovery of XTIUSD has been remarkable from a technical point of view. The price managed to overcome a loss of almost 10% in only four trading sessions. The pair is finding a solid resistance at our 23.6% Fibonacci retracement; the price will likely break this barrier in the upcoming sessions for different reasons that we will list below.

The relative strength index of US Oil is currently at 52%, and it has been very steady for the last five sessions; this will allow the commodity to continue its upward trend until it reaches an overbought status at 70% RSI.

The Bollinger bands are very wide, and although the upper band seems to be closing, the price is currently trading in between the bands, suggesting that the price is fair, with excellent room to continue its uptrend. However, it might find a temporary pullback.


US Oil July 27th 2021

The Ichimoku cloud has been left below, and the cloud indicates that the uptrend will continue at least to the $75 levels.

Our parabolic SAR indicator suggests that the price will continue climbing; although this is a lagging indicator, we cannot discard it entirely until two dots indicate the opposite.

The pair found a strong support level at $71.10, and it's currently very close to the resistance level.


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