XTI/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that the price is still stuck in a range between the support at $73 and the resistance and $83. Generally, there are
two ways to approach this kind of market: stay out or “play the range” by
buying at support and selling at resistance.
Once the price breaks out of this
range we should get a clearer picture of where the market is most likely to go.
On an upside breakout we should see $93 as the first target for the buyers and
on a downside breakout we should see $63 as the target for the sellers.
On the 4 hour chart below, we can
see inside the range and it looks like it’s getting even narrower going
forward. Lately, we got some bullish news for the oil market like Russia
planning to cut production by 500k BPD in March or China reopening with
yesterday’s PMI coming in strongly confirming a
pick up in economic activity.
These developments though failed
to give oil prices much strength as the market is also held back by the global
central banks tightening to restrain demand.
On the 1 hour chart below, we can
see that the price bounced near the support zone at $73 and then started
trading upwards within a channel.
The price is now struggling to
break a previous swing level at $77.74, so we are likely to see a pullback to
the bottom of the channel and then the buyers are likely to enter again
targeting a break of the resistance for further extension to the $83 resistance
area, and the sellers will look to a breakout to the downside of the channel
and start targeting the support area at $73.