Oil charts primary uptrend
Oil capitulated in 2022, but recent price action shows accumulation. This, on the back of potential positives, should support energy prices.
UKOil and USOil have both charted a higher trough (HT), followed by a higher peak (HP). The weekly patterns suggest the primary trend is up. Optimism that global macroeconomics are improving, with disinflation followed by a more moderate pace of Fed rate increase, are contributing.
China is also reopening. This has unleased demand. It has also opened its international borders, providing a further tailwind.
The test for UKOil and USOil is a question of momentum. A stochastic movement to the 80+ levels (green rectangles) will be a bullish development, suggesting that the uptrend may have legs.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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