Weekly Chart Analysis
1. UKOil has charted a higher trough followed by a higher peak.
2. This puts it into a defined uptrend.
3. UKOil is above its black 30-week EMA and the EMA is pointing up.
4. The weekly RSI is above 50 (green rectangle). This is the bullish side of the indicator.
5. The longer it maintains above 50, the greater the underlying momentum support for the the UKOil weekly price.
Daily Chart Analysis
1. Given the longer-term uptrend, the pullback over the last few days looks corrective in nature.
2. The correction ensued from an overbought RSI (green rectangle), as it normalised.
3. Corrections often take the form of continuation patterns.
4. In this case we have drawn two black down sloping lines to suggest a flag. However, this may be premature, and the pattern may alter as price evolves.
5. Nevertheless, for now the down sloping parallel lines will suffice.
6. A breakout above the top black trendline will suggest that the continuation pattern is potentially completing.
7. If so, price is likely to continue upwards as per the longer-term defined uptrend.
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.