The current structure of oil suggests the construction of a large bearish trend that moves within the green channel.
SimpleFX USOIL Chart Analysis: April 22, 2022
On the current chart, we see that the price has been creeping horizontally from the lower green line to the upper green line for about a month. In early March, the price touched the upper green wall. We see that the bulls did not break through the resistance line, and the price began to move in the opposite direction. This section describes a yellow channel.
In the next coming trading weeks, we can expect a decrease in the value of USOIL to the lower yellow line. Most likely, the bears are targeting the support level of 92.76. If this level breaks, the price may continue to move down to the lower green wall and the support level of 65.60.
Alternatively, the price of oil may rise a little more, and then there is a chance that the bulls will break through the resistance level of 106.35, which is located on the upper green wall. With a successful breakdown of this level, the price may rise to the next resistance level of 116.90, which is located on the upper green line.
When confirming the bearish movement of the market, it is recommended to consider opening sales transactions. With an upward price movement, we can continue to open long positions.