Amazon deals

Tuesday, January 24, 2017

WTI and Brent Crude Oil charts: consolidating within symmetrical triangles after touching 52 week highs

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil touched a 52 week high on Jan 3, but formed a 'reversal day' bar (higher high, lower close) and corrected down to its rising 50 day EMA.

Oil's price bounced up with good volume support, but touched a sequence of lower tops and higher bottoms - forming a 'symmetrical triangle' pattern.

Triangles tend to be unreliable patterns because the eventual breakout can occur in either direction. Since oil's price is trading above its 50 day and 200 day EMAs in bull territory, an upward breakout is more logical.

Daily technical indicators are not looking bullish. MACD is moving sideways below its falling signal line in bullish zone. RSI is in neutral zone. Slow stochastic is in bearish zone after failing to cross above its 50% level.

Waiting for the breakout before taking any buy/sell decision would be a prudent move.

On longer term weekly chart (not shown), oil's price is trading above its rising 20 week and 50 week EMAs, but below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are in bullish zones, but not showing any upward momentum.

Brent Crude Oil chart


After touching a 52 week high on Jan 3 and forming a 'reversal day' bar, the daily bar chart pattern of Brent Crude Oil has been consolidating sideways within a 'symmetrical triangle' pattern.

Oil's price is trading above its rising 50 day and 200 day EMAs in bull territory. So, the likely breakout from the 'symmetrical triangle' pattern is upward.

However, triangles are notorious for being unpredictable. A downward breakout can occur as well. It may be prudent to wait for the breakout before deciding to buy/sell.

Daily technical indicators are not giving any bullish signals. MACD is moving sideways below its falling signal line in bullish zone. RSI is moving sideways in neutral zone. Slow stochastic is in negative zone.

On longer term weekly chart (not shown), oil's price is trading above its rising 20 week and 50 week EMAs, but below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are in bullish zones, but showing slight downward momentum.

1 comment:

Subhankar said...

Oil slips as U.S. drilling recovery offsets OPEC-led cuts

https://in.finance.yahoo.com/news/oil-firms-producer-meeting-high-u-output-weighs-024152272--finance.html