Type:
Bullish Rise
Key Levels:
Resistance: 116.61
Pivot: 108.62
Support: 101.61
Preferred Case:
On the H1, price is moving above the ichimoku cloud and has broken out of descending trendline which supports our bullish bias that price will rise to the pivot at 108.62 where the swing high resistance, 50% fibonacci retracement and 78.6% fibonacci retracement are. Once we have upside confirmation, we would expect bullish momentum to carry price to 1st resistance at 116.61 in line with swing high resistance and 161.8% fibonacci extension . Take note of intermediate resistance at 111.14 in line with overlap resistance and 61.8% fibonacci retracement .
Alternative Scenario:
Alternatively, price could drop to intermediate support at 105.60 where the 38.2% fibonacci retracement and swing low support are. Should we have downside confirmation, we would expect bearish momentum to carry price to the 1st support at 101.61 in line with the swing low support and 78.6% fibonacci projection .
Fundamentals:
Recent G7 developments call for a price ceiling on Russian oil and a set price for Russian gas. By doing this, it might be possible to lessen the effects of future energy price rises. However, because of the sanctions' impact on Russian oil output and increased uncertainty, Brent and WTI are anticipated to trade higher. This gives us a weak bullish view on crude oil .

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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.