WTI crude oil futures hover above the two-week low of 62.75.

WTI has reversed back down again and plummeted aggressively after finding resistance at the 65.40 level during yesterday’s session. The price recorded a new two-week low of 62.75, which holds near the 20-day simple moving average (SMA) and currently, is paring some losses.

After their deep fall, in the 4-hour chart, the momentum indicators are moving higher after hitting the oversold areas. The Relative Strength Index (RSI) is hovering below the 50-neutral level in the past few days but is sloping to the upside. The %K line of the stochastic oscillator has jumped above the %D line and attempted a bullish crossover, suggesting upside correction.

If prices continue to head higher, after the sharp sell-off, resistance could come at the 64.20 resistance barrier, which is standing slightly below the 20-SMA in the short-term. A jump above the aforementioned level and a move higher towards the 40-SMA would reinforce the near-term bullish view, that will open the way towards the 65.40 key level.

However, should a downside reversal take form again, immediate support will likely come from the two-week low. If this area is breached, it could increase downside pressure until the 61.40 level, taken from the low on March 19.

Oil 03/04/2018 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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