USOIL – Bounce can extend higher

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Updated: 08 April 2020

Good day traders! Crude Oil found some support on the 30th of March at the 20 Dollar level and bounced slightly higher. The move lower from the 20th of March high, into the 30th of March low certainly does not look like a 5-wave movement which could mean that price is only correcting higher at the moment.

The blue pitchfork on the chart above has thus far turned price lower at the center median line and provided minor support at the lower median line where price is currently hovering around.

I do think that Crude Oil can trade higher but for that to happen the 22.87 and 24.02 levels have to hold. Should enough buyers enter this market again and drive prices higher, then we could see Crude Oil test the center median line again which currently lies at 30.35.

Above that line and a slightly optimistic second target might be the upper median line at 37.02.

Conclusion

In the short-term, I think that Crude Oil has the potential to trade higher, but I will view it as a corrective phase. There might be another lower low in the near future for Crude Oil before we see an important low form and before a much larger reversal takes place.

Bias: Bullish during a proposed corrective phase

Potential targets: 30.35 and 37.02

Until next time, have a great day and stay safe!

Richard Krugel