USOIL has reached a bullish demand zone(shown on the graph) at 17.5, developed in 2002. This will surely give bulls initiative to buy. Ultimately we are still very bearish.
Therefore, our Resistance 2 zone may be broken in order to test the 20 EMA & 10 MA on the Daily timeframe at around 23.5-24.5$/B. it would make sense that we see a bounce from the Bearish trend line before our next long Short.
Potentially, the market could gap up after the weekend at this zone. Fall through resistance (R2), then attempt to return to opening price before our next big short. Where we could see 14$/D BEING TESTED!
Therefore, our Resistance 2 zone may be broken in order to test the 20 EMA & 10 MA on the Daily timeframe at around 23.5-24.5$/B. it would make sense that we see a bounce from the Bearish trend line before our next long Short.
Potentially, the market could gap up after the weekend at this zone. Fall through resistance (R2), then attempt to return to opening price before our next big short. Where we could see 14$/D BEING TESTED!