Technical Analysis

Oil provides buying opportunity at $48 levels


Surprisingly, oil prices dipped last week from $53.10 a barrel to $49.30 today despite moving in an upside direction. This decline may provide a good buying opportunity in the coming hours, according to this analysis.

As seen from the previous chart, oil is moving in a bullish direction over the long term as it breached the four-way trend line and is also moving in a bullish direction over the medium term as it is on its way to test the lower line of the ascending channel.

According to the trend lines shown on the chart, 48.00 - 48.50 zones may provide a good opportunity to buy oil until price levels of not less than 53.00, which represents the previous peak.

It is clear on the 1-hour timeframe that the ABCD pattern will be completed at the 48.10 level, which increases the likelihood of a rally from this price zone.

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