Oil tested the defining support in the form of WCZ 1/2 37.71-37.32 again yesterday, which led to growth and an absorption pattern to form on the daily level. Purchases from the control zone must be kept until the monthly high is updated, afterwards they can be converted to breakeven or a part can be consolidated.
Working within the ascending momentum in the medium term makes it possible for you to hold part of the position based on testing the 46.19 level, which is the main goal in the long term.
The option to continue forming the accumulation zone will develop if testing the month's high results in forming an absorption pattern of the daily level and an increase in offers. This will indicate the need to open a short position and close all purchases.
Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which changes several times a year.
Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com