In this analysis I do NOT consider fundamental factors that significantly influence the oil price. Thus I only focus on time period as short as can possibly be on technical basis.
There is some convincing technical setup arising on WTI H4 timeframe with good signals each of which is worth taking into consideration, at least to me.
1) Broken short term descending trend line on attempt #4.
2) The price has returned exactly to the 50% fibo area and has not closed below the local support area so far.
3) RSI shows gained momentum on highlighted support area with open space up.
4) Latest candle rejected the selling pressure and printed the "Hammer" formation on significant confluence level (look at #2).
5) (ok just a little bit of fundamentals) There is no sight of significant price changes since OPEC has no reason to change its plan of production revival and covid seems to be under control (hopefully).
To me RRR of 2 with highlighted limit orders makes sense in short term. Let me know what you think about that!
There is some convincing technical setup arising on WTI H4 timeframe with good signals each of which is worth taking into consideration, at least to me.
1) Broken short term descending trend line on attempt #4.
2) The price has returned exactly to the 50% fibo area and has not closed below the local support area so far.
3) RSI shows gained momentum on highlighted support area with open space up.
4) Latest candle rejected the selling pressure and printed the "Hammer" formation on significant confluence level (look at #2).
5) (ok just a little bit of fundamentals) There is no sight of significant price changes since OPEC has no reason to change its plan of production revival and covid seems to be under control (hopefully).
To me RRR of 2 with highlighted limit orders makes sense in short term. Let me know what you think about that!
