WTI OIL Outlook: Bears are on hold but recovery attempts lack momentum for stronger advance
|US CRUDE OIL
WTI oil price bounced on Thursday after triple failure to clear 200DMA ($57.70) support.
Initial reversal signal is forming on daily chart after price action in past two days ended in Doji candles and subsequent advance.
Near-term action is also underpinned by rising daily cloud which increases risk of reversal. Daily stochastic is on track to emerge from oversold zone and RSI turns north, but momentum remains strongly negative and may obstruct recovery attempts.
Fresh advance tests initial resistance at ($58.59), but minimum requirement for confirmation of reversal is extension through pivotal barriers at $60.00/$60.48 (psychological/Fibo 38.2% of $65.43/$57.42).
Failure to clear 55DMA would signal prolonged sideways trading and keep the downside vulnerable, while break below 200DMA would generate negative signal.
Res: 58.59; 59.31; 60.00; 60.48
Sup: 57.70; 57.42; 57.15; 56.46
Interested in Oil technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.