Almost the entire last week, the oil price moved within the range of the session of 1 March. It was only on Friday that an interesting price action developed.
As can be seen in the daily chart below, the price of oil is moving in an upward trend, with dips and highs being created at ever higher levels. Resistance in this trend is at the level of 57.80 dollars per barrel and remains unbeatable despite the attempts made in February and March this year.
On the other hand, a zone between 55.40 and 54.50 and an EMA 10/20 average channel provide support from below, for reversals. This area was tested during the Friday session, where a candle formation resembling a bullish pin bar was created.
Oil prices can now rise after a bullish price action formation. The closest target for buyers in this scenario would again be a resistance of 57.80 USD. After overcoming it, the next important level is only at 64.40.
Alternatively, negating the lows of the pin bar (Friday session) would open the way for a deeper decline. Sellers would then be able to push the price to support at $51.30.