Baxia Markets
January 04, 2022

US Oil struggles to break resistance

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The energy commodity had a good end of December where it gained almost 12% in six sessions, now we see a correction but the uptrend could continue in the short term.


The Bollinger bands are wide and they continue opening up, most importantly they are aiming upwards, which is often a sign of an uptrend, the price will have to break the resistance at $76.40 on our 38.2% Fibonacci retracement.


US Oil Dec 21st 2021


The relative strength index is 56% which will also allow the pair to move up freely until it reaches the 70% overbought level. The pair is currently trading inside the Ichimoku cloud which can be seen as market uncertainty, but the cloud is very narrow and the price is about to exit it, we would likely see the price at 77.70 in the short term if it managed to break the resistance.


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