Oil Technical Analysis – October-10-2023


Reuters – At the start of this week, the Crude Oil Market Analysis shows that the price of oil made a comeback. This was a crucial move as it helped to stabilize a situation where oil was being sold off too quickly. However, this might just draw in more people who are looking to sell their oil.

For the last six trading sessions since September 28, the price of oil has taken a dip by 12.8%. The lowest price was noted right after some job-related data was released. But then, there was a shift in the market as people started buying oil again. They believed that even with a robust job market in the US, inflation isn’t rising. On Monday, there were concerns that the supply of energy might be cut short due to conflicts involving Muslim countries, which could impact oil and gas supplies.

Crude Oil Technical Analysis

In our comprehensive Crude Oil Analysis, we delve into the intricate details of the oil market. Despite attempts, the WTI was unable to secure a close above the 85.38 pivot during today’s trading session. This observation is a crucial part of our analysis. To dissect the Crude Oil Market in-depth, we employ essential tools such as the Ichimoku cloud, pivot indicator, and the RSI on the chart. These tools provide us with a detailed perspective on the market trends and potential shifts.

According to our Crude Oil market analysis based on the 4H chart, the trend appears to be bearish. This is evident as it is hovering below both the Ichimoku cloud and the pivot line. The RSI indicator flipping below the 50 level further strengthens this bearish scenario.

Oil Technical Analysis - October-10-2023

Crude Oil Market Analysis

We also identified an inverted hammer candlestick pattern, which supports our bearish outlook. Therefore, if the oil price continues to hold below the 85.38 mark, it is likely that bears could push the price to lower support levels. The first target would be the recent lower low around $80. The risk/reward ratio for this trade stands at 1.8.

However, our crude Oil market analysis also considers potential bullish scenarios. The Ichimoku cloud plays a crucial role in providing a bullish outlook for our analysis. This would only occur if the price breaks above the upper bands of the cloud, which is referred to as leading Span B or Sendou Span B.

  • 10 October 2023
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