USOIL (Daily) Oil trading into resistance.

6 באוק׳ 2016

USOIL (Daily) still in an uptrend starting from the lows created on February 11 2016. Price is however at resistance at $50 as well as the 61.8% retracement of the previous down swing. This zone is also a previous swing high. The last two times the market approached this zone it turned lower. Will the market turn lower again? or will price trades to the top of the bull channel? Will the bulls take profit here? A strong break of this level could indicate a continuation of the upward momentum. However watch out for false breaks. Both bulls and bears should carefully watch the price action and wait for conformation.