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.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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