Tuesday, June 25, 2019
Home > Posts > Technical Analysis – WTI crude is looking more positive

Technical Analysis – WTI crude is looking more positive

WTI crude futures build a base above the 2½-month trough.

WTI crude oil futures found strong support at a fresh two-and-half-month low of 57.40, where the 38.2% Fibonacci retracement level of the upward rally from 42.50 to 66.60 is standing. The price drifted below the ‘golden cross’ of the 50- and 200-simple moving averages (SMAs) in the daily timeframe, while the stochastic is raising chances for bullish correction at it created a positive cross within the %K and %D lines in the oversold zone.

Should the price edge higher, positive momentum could probably last until the 200-day SMA currently at 60.23, while slightly higher the 60.70 resistance and the 23.6% Fibonacci of 60.90 could act as strong resistance levels. More upside tendency could open the door for the 50-day SMA around 62.20 ahead of the 64.00 level.

On the downside, the 38.2% Fibonacci mark of 57.40 could act as significant support once again. A failure to hold above this level could strengthen the sell-off towards the 50% Fibonacci of 54.50.

In brief, WTI oil futures are looking more positive in the medium-term, however, in the near-term, the price remains below the ‘golden cross’ formation but the stochastic indicates positive retracement.


TRADE THE MARKETS     TRY A DEMO ACCOUNT     US TRADERS

All trading involves risk. It is possible to lose all your capital.


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

Leave a Reply

Your email address will not be published. Required fields are marked *