🧠 Introduction & Trade Philosophy
In today’s 4H USOIL chart analysis, we are at a critical decision-making zone, where price action is preparing to make a major move in either direction, based on the response to a central demand zone. We are applying the MMC Rule, which emphasizes mirroring supply-demand behavior and validating market moves through structural confirmation.
The current price structure presents a classic MMC scenario, where price must either confirm a bullish double demand reaction or invalidate the setup by breaking the key zone and moving bearish.
📍 Chart Structure Explained
🔷 1. Central Reversal Zones (CRZs)
There are two CRZs highlighted:
The upper CRZ around 65.90–66.20, where price was previously rejected.
The lower CRZ, where price is currently consolidating, is around 64.80–65.50.
These zones are liquidity-rich areas where big players react—either by absorbing positions or driving directional moves.
🟢 2. Bullish Scenario – MMC Rule In Play (Path 1)
"If we want it bullish, we want 50% supply and demand will be double according to MMC Rule"
According to MMC, a bullish move must be confirmed by a strong reaction from demand, showing double the pressure of the last bearish move. Here's how that plays out:
Price respects the lower CRZ, bouncing near the 65.00 mark.
If this bounce gains momentum and breaks above the trendline resistance, the first target is the minor resistance at $69.00, followed by the major resistance zone near $70.50–$71.00.
A retest of broken structure, followed by bullish continuation, is expected. This is marked with the white zigzag projection labeled as “1” on the chart.
Watch for a clear higher high formation, which would indicate a shift in structure and validate bullish momentum.
🔻 3. Bearish Scenario – Breakdown Confirmation (Path 2)
"If it breaks, USOIL will go bearish"
If price fails to hold the current demand and closes below $64.80–64.50, it signals that demand has been absorbed, and MMC reversal has failed. In that case:
A clean breakdown below the demand zone will confirm bearish control.
The next downside target becomes $62.00, as labeled “2” on the chart.
The downward move is likely to follow a steep path as marked with the sharp downward trendline extension, especially if supported by volume and news catalysts.
🔄 Mirror Concept Highlight – Ellipse Area
The ellipse shape on the chart marks a previous compression zone followed by a breakout. This area represents an imbalance in supply that led to a sell-off. The MMC principle suggests the market tends to mirror these zones—if that was previous supply, and the current demand zone mirrors its positioning and structure, we can anticipate a similar reaction, but to the upside.
This is where the "50% double reaction" rule comes in—demand needs to show twice the strength to overcome the previous sell-side pressure.
🔧 Technical Levels Summary
Zone Type Price Range Notes
Major Resistance 70.50 – 71.00 Final target if bullish scenario plays out
Minor Resistance 68.80 – 69.20 First bullish checkpoint
Upper CRZ 65.90 – 66.20 Key structure to break for bulls
Lower CRZ (Support) 64.80 – 65.50 Demand base for bullish setup
Bearish Target Zone 62.00 – 61.80 Projected zone if support breaks
🧭 Trader’s Mindset & Risk Notes (MMC Style)
Wait for clear confirmation and price behavior near the CRZs before entering.
Use trendline breaks, candlestick confirmation, and volume to validate direction.
Avoid guessing the direction—let price tell the story.
Stick to MMC rules: No confirmation, no position.
✅ Bullish Criteria Checklist:
✔️ Price respects lower CRZ
❌ Clean breakdown structure
🚀 Trade Plan & Outlook
We’re now at a critical zone where market sentiment will soon be clear. Based on your MMC analysis, the bias remains bullish as long as price holds above $64.80. Be patient and let the setup complete with structure confirmation.
This is not just a technical play—it's a psychological zone, where institutional traders also make decisions. Follow the MMC logic and react with confirmation.
In today’s 4H USOIL chart analysis, we are at a critical decision-making zone, where price action is preparing to make a major move in either direction, based on the response to a central demand zone. We are applying the MMC Rule, which emphasizes mirroring supply-demand behavior and validating market moves through structural confirmation.
The current price structure presents a classic MMC scenario, where price must either confirm a bullish double demand reaction or invalidate the setup by breaking the key zone and moving bearish.
📍 Chart Structure Explained
🔷 1. Central Reversal Zones (CRZs)
There are two CRZs highlighted:
The upper CRZ around 65.90–66.20, where price was previously rejected.
The lower CRZ, where price is currently consolidating, is around 64.80–65.50.
These zones are liquidity-rich areas where big players react—either by absorbing positions or driving directional moves.
🟢 2. Bullish Scenario – MMC Rule In Play (Path 1)
"If we want it bullish, we want 50% supply and demand will be double according to MMC Rule"
According to MMC, a bullish move must be confirmed by a strong reaction from demand, showing double the pressure of the last bearish move. Here's how that plays out:
Price respects the lower CRZ, bouncing near the 65.00 mark.
If this bounce gains momentum and breaks above the trendline resistance, the first target is the minor resistance at $69.00, followed by the major resistance zone near $70.50–$71.00.
A retest of broken structure, followed by bullish continuation, is expected. This is marked with the white zigzag projection labeled as “1” on the chart.
Watch for a clear higher high formation, which would indicate a shift in structure and validate bullish momentum.
🔻 3. Bearish Scenario – Breakdown Confirmation (Path 2)
"If it breaks, USOIL will go bearish"
If price fails to hold the current demand and closes below $64.80–64.50, it signals that demand has been absorbed, and MMC reversal has failed. In that case:
A clean breakdown below the demand zone will confirm bearish control.
The next downside target becomes $62.00, as labeled “2” on the chart.
The downward move is likely to follow a steep path as marked with the sharp downward trendline extension, especially if supported by volume and news catalysts.
🔄 Mirror Concept Highlight – Ellipse Area
The ellipse shape on the chart marks a previous compression zone followed by a breakout. This area represents an imbalance in supply that led to a sell-off. The MMC principle suggests the market tends to mirror these zones—if that was previous supply, and the current demand zone mirrors its positioning and structure, we can anticipate a similar reaction, but to the upside.
This is where the "50% double reaction" rule comes in—demand needs to show twice the strength to overcome the previous sell-side pressure.
🔧 Technical Levels Summary
Zone Type Price Range Notes
Major Resistance 70.50 – 71.00 Final target if bullish scenario plays out
Minor Resistance 68.80 – 69.20 First bullish checkpoint
Upper CRZ 65.90 – 66.20 Key structure to break for bulls
Lower CRZ (Support) 64.80 – 65.50 Demand base for bullish setup
Bearish Target Zone 62.00 – 61.80 Projected zone if support breaks
🧭 Trader’s Mindset & Risk Notes (MMC Style)
Wait for clear confirmation and price behavior near the CRZs before entering.
Use trendline breaks, candlestick confirmation, and volume to validate direction.
Avoid guessing the direction—let price tell the story.
Stick to MMC rules: No confirmation, no position.
✅ Bullish Criteria Checklist:
✔️ Price respects lower CRZ
- ✔️ Breakout above trendline
- ✔️ Closes above $66.20
- ✔️ Higher highs + strong bullish candles
- ✔️ MMC Double Demand Reaction Confirmed
- ❌ Bearish Breakdown Triggers:
- ❌ Breaks below $64.50
- ❌ Weak bounce + lower highs
- ❌ Volume increases on downside
❌ Clean breakdown structure
🚀 Trade Plan & Outlook
We’re now at a critical zone where market sentiment will soon be clear. Based on your MMC analysis, the bias remains bullish as long as price holds above $64.80. Be patient and let the setup complete with structure confirmation.
This is not just a technical play—it's a psychological zone, where institutional traders also make decisions. Follow the MMC logic and react with confirmation.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.