Oil Range Expansion Is A Possibility

Analyst, Full-Time Trader • Apr 14, 2021 at 6:52 AM EDT

Oil has been consolidating in a rectangle and we could see a move up before the price drops.

Since March 17 we have seen a consolidation in the oil price. We don’t know if the market is going to continue with any trend until the range is broken. At this point, we should see a drop from the 78.6-88.6 zone towards the W L4 camarilla. However, the POC zone needs to be reached – 63.22-63.98. When the price gets there, I assume another drop is coming towards 57.52 which will be the target for the move. This will create another rectangle and a possible range of 50-65.

(Click on image to enlarge)

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