US-oil weekly bias

12 lut 2023

West Texas oil/ U.S. oil. It looks like it may want to push up towards the higher area of supply which has been left unmitigated... Based on the moves we saw last week, which were predominantly bullish towards the end of the week, lead me to believe we could be hunting the high levels of liquidity that lie above our previous highs. If this is the case, it will take us directly into the unmitigated daily supply that we have highlighted.

After tapping into the area of demand and sweeping a previous low, we have left impulsively to the upside, therefore leading me to believe upside movements may persist.

As per all of our markups, we'll be watching this on a smaller time frame to determine which direction it truly wants to move in, but on the daily and four-hour timeframes, you can see we have broken clear structures to the downside whilst still moving towards the high of our daily range.

With the CPI coming this week, we can effectively say that we will see some shifts in this pair.

Overall my bias on this is long, but I would like to see a clear confirmation to take the trade. Once the move to the upside is complete, I believe we could see further downside for the US oil industry.

Fundamentally, this pair does not correlate with what we're seeing in true price, which essentially could lead us into a bullish move if areas of supply that are shown on the daily do not hold.

**Be aware we have a smaller time frame area of supply just above where the price is currently, which is not shown in this markup**