FxWirePro: USOIL extends range trade, outlook remains bullish
Chart - Courtesy Trading View
US OIL was trading rangebound for the second straight session, outlook however remains bullish.
The pair has formed back to back Doji and inverted hammer formations, denting further upside.
GMMA indicator shows major and minor trend in the pair are strongly bullish. Volatility is high and rising.
Price action is consolidating break above daily cloud, momentum studies are biased higher.
MACD and ADX support upside, 5-DMA is biased higher and is immediate support at 111.37.
Lower oil inventories in the US Strategic Petroleum Reserve (SPR) support prices and keep downside limited.
Focus now on US Crude Oil Inventories data scheduled for release at 14:30 GMT, analysts expect inventories to fall to 1.383M from 8.487M in the previous week.
Resumption of upside will see retest of yearly high at 129.42. Break below 200H MA will see more weakness.