WTI Crude chart
The following comments appeared in the previous post on the daily bar chart pattern of WTI Crude oil:
“Another attempt at a rally may be in progress – thanks to the continued turmoil in the Middle East. A glut in global supply is likely to play spoil sport.”
Oil’s price briefly crossed above the 43 level but failed to overcome strong resistance from its falling 20 day EMA.
After drifting down and finding some support at the 40 level, oil’s price crashed on strong volumes to close below 38 – a level not seen since early 2009.
Daily technical indicators are bearish and looking oversold. MACD is falling below its signal line in negative zone. RSI is seeking support from the edge of its oversold zone.
Slow stochastic has slipped inside its oversold zone, but showing positive divergence by touching a higher bottom. That doesn’t mean oil’s price won’t fall even lower.
On longer term weekly chart (not shown), oil’s price is trading well below its three weekly EMAs in a long-term bear market. Weekly technical indicators are bearish and looking oversold.
Brent Crude chart
The following comments appeared in the previous post on the daily bar chart pattern of Brent Crude oil:
“Oil’s price is yet to cross above its falling 20 day EMA, and is trading below its three EMAs in a bear market. Any rally may be short-lived.”
Oil’s price managed to cross above the 46 level two days in a row, but could not overcome resistance from its falling 20 day EMA and dropped to close below the 41 level.
All three daily technical indicators are in bearish zones and looking oversold, but Slow stochastic is showing positive divergence by touching a higher bottom.
On longer term weekly chart (not shown), oil’s price is trading well below its three weekly EMAs in a long-term bear market. Weekly technical indicators are in bearish zones, and looking oversold.
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