Crude oil remains within near-term congestion; pressure on range floor persists

Slobodan Drvenica Windsor Brokers

WTI Crude Oil

Resumes lower on Monday and holding in daily Ichimoku cloud, after Friday’s long-legged Doji. Friday’s spike to 48.44 (just above near-term congestion top at 48.30) and subsequent weakness, signaled failure at the upper boundary, keeping the downside vulnerable.
Key near-term supports lay at 46.40/20 (higher base/Fibo 38.2% of 41.09/49.37 ascend, reinforced by the base of descending daily cloud), violation of which would trigger an extension of corrective pullback from 49.34 (19 Aug peak) towards 45.22 50% retracement) and 44.24 (Fibo 61.8%/daily Kijun-sen).
Near-term studies are in negative / neutral mode, with prolonged consolidation expected while 46.40 trigger holds.
Daily cloud top at 47.69, reinforced by broken daily Tenkan-sen line, marks strong barrier ahead of near-term range top breakpoint.

Res: 47.26; 47.69; 48.44; 48.92
Sup: 46.77; 46.40; 46.20; 45.22

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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