WTI Crude Oil Forecast: Double Hamer Candlesticks Indicates Bullish Move, But Strong Resistance at $80 – 16 February 2023
As long as it stays somewhat stable, this is almost a “buy on the dips” market, but within a well-defined range.
Oil prices are making great trade opportunities
That being said, if we break down below the bottom of the candlestick for the day, we would be breaking down below two hammers. This would obviously be a very negative sign and would almost certainly send the market down to the $75 level. Underneath there, we have the $72.50 level, and I think a lot of people would be looking at that as potential support yet again. After all, it has been the bottom of the longer-term consolidation, so I think there is going to be a big fight in that area.
The markets continue to go back and forth based upon the idea of possibly trying to determine whether or not there is going to be enough global demand for crude oil, as it looks like the global economy is slowing down. If that’s going to be the case, that makes a lot of sense that we would see prices suppressed. However, China is reopening and there are a lot of people out there banking on that being the savior for oil. Furthermore, the United States has been emptying its Strategic Petroleum Reserve for a while now, so sooner or later the US government steps into the fray and starts buying. While it was good for buying midterm votes, it really didn’t do much to change the situation.
Having said that, they will have to replace that area, and therefore it’s worth noting that sooner or later a huge fire steps into this market. It is because of this that I believe the bottom of this consolidation area is probably about as low as we go unless the economy completely collapses. As long as it stays somewhat stable, this is almost a “buy on the dips” market, but within a well-defined range.
Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Forex Oil trading platforms worth trading with.
We will connect you with the broker that is most compatible for you.