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Technical Analysis – WTI futures remains bullish

OILMn-AUG18 26/06/18 | EconAlerts


WTI futures remains bullish as it stands above 50.0% Fibonacci.

West Texas Intermediate (WTI) futures posted a negative day after they reached a new one-month high of 69.40 yesterday, while on Friday the price created sharp bullish extensions. The price eased and tested the 67.75 support level on Monday before the jump above the 50.0% Fibonacci retracement level of the down-leg from 72.87 to 63.37, near 68.12, once again.

In the 4-hour chart, the RSI stands in the bullish area and is sloping slightly north, while the %K line of the stochastic oscillator posted a positive crossover with the %D line near the oversold zone, suggesting that the market would continue the upside momentum.

If the market manages to pick up speed, the 61.8% Fibonacci mark of 69.24 could offer nearby resistance. Then a leg above that level, the oil could meet the one-month high of 69.40, which stands marginally above the aforementioned barrier.

Should prices decline and drop below the 50.0% Fibonacci support could be found around 67.75, an area which provided strong resistance on Monday. Then a leg below that level, the oil could meet 67.30, which overlaps with the 20-SMA in the 4-hour chart, before the focus shifts to the 38.2% Fibonacci near the 67.00 handle.

In the medium-term, the outlook remains bullish since prices hold above all the moving average lines and the bullish cross between the 20- and the 40-SMAs stays in place.

OILMn-AUG18 26/06/18 | 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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