2024 OIL OUTLOOK
On the monthly charts, we have a consolidation around a strong demand level. On the weekly timeframe, we do not have a clear direction though the market seems to be pushing higher to mitigate inefficiencies at the 107-115 levels.
Dropping down to the 4-hour chart, we have a bullish bias targeting 77-90 levels. Change of character plus flip zones in addition to multiple breaks of structures inform our bullish bias. Once we cross into 2024, we expect a further slide down to the unmitigated zones in yellow or green to collect buy orders before pushing higher. Oil is positively correlated with the Canadian dollar (cad), such that an rise in oil prices boosts CAD and the reverse is true. Moving forward we are also seeking cross CAD set ups.
Our analysis is based on smart money concepts particularly supply and demand. We practice a conservative approach to forex trading that ensures risk minimization.