WTI oil – limited correction seen for now

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil is in green for the second day after the last week’s bearish acceleration from $46.46 found footstep at $44.22.

Recovery is lacking momentum for stronger upside action and was so far capped at $45.00, however, overextended daily studies suggest stronger correction.

Daily RSI bounced from oversold zone boundary while slow stochastic is turning north in deep oversold territory.

This may generate bullish signal for further recovery which requires break above $45.16 (Fibo 38.2% of $46.69/$44.22 downleg) to generate bullish signal for extension towards $45.34 (hourly cloud top) and $45.75 (Fibo 61.8% of $46.69/$44.22).

However, bearish technicals and strong negative sentiment keep oil price under pressure that may limit corrective action ahead of final push towards $43.74 target (05 May low).

Stronger correction could be expected on break above $46.69 (12 June lower top) of braoder downtrend from $51.98.

Res: 45.16; 45.34; 45.75; 46.21
Sup: 44.22; 44.00; 43.74; 43.06

Interested in Oil technicals? Check out the key levels

1. R3 44.78
2. R2 44.75
3. R1 44.67
PP 44.64
1. S1 44.56
2. S2 44.53
3. S3 44.45

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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