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
- R3 59.5
- R2 58.93
- R1 58.52
- PP 57.95
- S1 57.54
- S2 56.97
- S3 56.56
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.