Tuesday, February 21, 2017

WTI and Brent Crude Oil charts: consolidating sideways with an upward bias

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil has failed to make much upward progress since touching a 52 week high on Jan 3. 

Oil's price has been consolidating sideways in a range between 50.50 and 54.50 with a slight upward bias - as can be seen from the gradually rising 20 day EMA.

Daily technical indicators are in bullish zones. MACD and RSI are moving sideways. Slow stochastic is showing a bit of upward momentum.

Eventually there will be a breakout from the trading range. Expect it to be upwards - to the 59-60 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 only Slow stochastic is showing some upward momentum.

Brent Crude Oil chart


After touching a 52 week high on Jan 3, the daily bar chart pattern of Brent Crude Oil has been stuck in a range between 53.50 and 57.50.

The gradually rising 20 day EMA indicates that bulls have retained control during the sideways consolidation.

Daily technical indicators are giving conflicting signals - which is often the case during sideways consolidations. MACD is sliding below its signal line in positive zone. RSI is moving sideways along its 50% level. Slow stochastic has dropped below its 50% level.

A likely upward breakout from the trading range can take oil's price to the 61-62 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 not showing any upward momentum.

1 comment:

Subhankar said...

Why the ‘next leg in the oil bull market’ is coming soon

http://www.marketwatch.com/story/why-the-next-leg-in-the-oil-bull-market-could-come-soon-2017-02-20