The Pivot Point: A crucial level has emerged on this chart: the $66.70 mark, highlighted by the green line. This level has repeatedly acted as both support and resistance, making it a key pivot point for the price. The market's behavior around this line offers vital clues about future direction.
Breakout and Bearish Reversal: In early September, the price attempted a significant bullish breakout, climbing well above the $66.70 level and reaching a high near $69.00. However, this rally was short-lived, with a sharp and aggressive bearish reversal that pushed the price not only back below $66.70 but also to new lows for the period.
Current Price Action: After the steep decline, the price has once again rallied back to the $66.70 level. This is a critical test. It’s a moment of truth for both buyers and sellers as they fight for control. The price’s struggle at this level indicates a strong area of contestation.
Trading Outlook and Future Targets
The future of UK Oil depends on whether the $66.70 level will hold as resistance or be broken again.
Bullish Scenario: If the buyers can successfully push the price above $66.70 with conviction and hold it there, it would signal a potential reversal. The next likely targets would be the $67.50 level and potentially higher.
Bearish Scenario: If the price is rejected at $66.70 once more and falls, it would confirm that the bearish trend is still dominant. A breakdown from here could send the price back towards the recent lows and possibly to new ones.
In summary, the $66.70 level is the most important area on this chart. The next decisive move will likely be a result of a clear break or rejection at this pivotal point.