WTI OIL Technical pull-back. Buy on these levels.

WTI Oil (USOIL) gave us the most optimal buy entry last time we made a call on it (January 22, see chart below) and almost touched the 79.40 Target before pulling back:


The pattern that has emerged is a Channel Up that started since the December 13 2023 bottom. The recent top at 79.30 is a technical Higher High for the Channel Up and the rejection has started the new Bearish Leg to a Lower Low (bottom of Channel Up). However the price may not pull-back that far this time as the 4H RSI is testing its Higher Lows trend-line that has been holding since the December 06 2023 RSI Low and has already given 3 contact points for buy entries.

As a result this is where we are placing our 1st buy, with which we are targeting 83.00, being the 0.618 Fibonacci retracement level from the Top and right under Resistance 2 (83.60). That will establish a new 'diverging' Channel Up (dotted lines), that will aim for a similar Higher High range (+12.15%) as the January 28 High.

Since however the price already broke below the 4H MA50 (blue trend-line), we have to consider the possibility of a lower decline, which can indeed be as low as the bottom of the Channel Up, on a -9.00% decline (such as the January 03 Low). We believe though that in order to establish the new medium-term uptrend, the 1D MA50 (red trend-line) has to hold, so most likely this is the potential max downside extension. With that long, we will target the top of the (blue) Channel Up at 81.00, a little lower than the previous +14.40% Bullish Leg.


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