The price of oil (real-time price) in the last few months has accustomed us to continuous surprises that we have told on these pages (click here to read).
The surprises, however, may not be over. Despite vertical takeoff from the $ 6 area up to the $ 40 area, the danger of further falls is not yet behind us.
With the help of graphical and forecasting analysis we try to understand why.
Daily time-frame: graphical and forecast analysis on oil
During the last five sessions the price trend has been sideways / bearish so the new bullish projection we were talking about last week is struggling to take off targets. A first confirmation of the rise, which has the $ 64,492 area oil price target as its target, would come from the break of the area of the day at $ 45.871. The second price target is also in the $ 90 area.
The bears may regain the upper hand if there is a daily close below $ 34.36.
Oil: bullish projection in progress on the daily time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.
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Weekly time frame: graphic and forecast analysis on oil
The current projection is bullish and is directed towards the 2nd price target in the $ 53 area. However, the week that just ended saw the breakdown of the $ 38,798 resistance in the area fail. Not a good sign. The maximum extension of the upside is in the $ 76 area. There are, therefore, all the conditions for a continuation of the ongoing increase.
However it should be noted that descents down to the $ 29,757 area are compatible with the ongoing hike and could constitute a buying opportunity. Only weekly closings below this level would undermine the bullish scenario. A first indication of this would occur with weekly closings of less than $ 38.75.
Oil: bullish projection in progress on the weekly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration
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Monthly time frame: graphic and forecast analysis on oil
The closure of the month of June will be decisive for understanding the long-term path. A monthly close above $ 40 would reinforce the bullish projection with targets in the $ 53 area first, and $ 76.5 then. Otherwise the oil price could return to the $ 26.18 area.
Oil: bullish projection in progress on the monthly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.
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Conclusion
Look carefully at the closing in June
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