USOIL trend not showing signs of slowing down
By Paul Reid
09 March 2023
Crude oil prices have been fluctuating this month, influenced by various factors such as supply disruptions, geopolitical tensions, demand recovery, and recent OPEC+ decisions. The current price of WTI crude oil, as of 3 March 2023, is $79.85 (USD) per barrel, which is slightly lower than the previous week's settlement of $79.06 per barrel.
The Brent crude oil price, which is used as a benchmark for international oil markets, stood at $82.45 per barrel on 27 February, indicating a slight increase this month. The OPEC basket price, which represents a weighted average of prices for petroleum blends produced by OPEC members, was $81.64 per barrel on 27 February, laying the foundations for a continuing bullish trend in March.
US OIL on the charts
The current bullish trend is very strong on WTI crude oil. As long as the price remains above the support at 77.84 USD, traders could try to benefit from the boom.
The first bullish objective is located at 81.39 USD. The bullish momentum would be boosted by a break in this resistance. Buyers would then use the next resistance located at 82.17 USD as an objective. Crossing it would then enable buyers to target 94.47 USD.
Caution is advised given the bullish rally is already well underway. Excesses could lead to a possible correction in the short term. If this is the case, remember that trading against the trend may be riskier. It would seem more appropriate to wait for a signal indicating a reversal of the trend.
The main question is whether or not the price of USOIL would be able to keep the area above $78 or slide back into the range. Should the price stay in the range for a longer period of time, the odds of a wider upswing will increase.
Exness Stop Out Protection calculates your equity based on the mid-price between the bid and ask price, so if USOIL spreads do widen during an upswing, you will have a cushion that gives your positions a higher chance of recovering. In concert with stop loss and take profit, USOIL may well offer opportunities in March worthy of deeper analysis.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.
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