WTI Crude Oil chart
On Nov 21, the daily bar chart pattern of WTI Crude Oil broke out above the 'symmetrical triangle' pattern within which it was consolidating since the beginning of Nov '17 (refer previous post).
Oil's price rose with good volume support to touch a new high of 59 on Nov 24, but all three daily technical indicators touched lower tops. The negative divergences triggered a pullback towards the top of the 'triangle'.
After touching an intra-day low of 56.75 on Nov 29, oil's price recovered to touch a slightly lower top of 58.90 on Dec 1. The entire trading from Nov 21 onwards appears to be forming another 'symmetrical triangle' pattern.
All three EMAs are rising, and oil's price is trading above them in a bull market. Daily technical indicators are in bullish zones after correcting overbought conditions, but are not showing any upward momentum.
Expect some more consolidation before another breakout can occur. Logically, the breakout should be upwards because oil's price is in a bull market. However, it is better to wait for the breakout because a 'triangle' pattern is unreliable.
On longer term weekly chart (not shown), oil's price made a brief foray above its sliding 200 week EMA, but has slipped down to close just below it. The 20 week and 50 week EMAs are rising towards the 200 week EMA. Weekly MACD and Slow stochastic are in their overbought zones. RSI has started correcting down from its overbought zone.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil has been consolidating sideways within a 'symmetrical triangle' pattern since the beginning of Nov '17. The rising 20 day EMA has provided good downside support.
On Dec 1, oil's price had an intra-day breakout above the 'triangle' - touching a high of 64.30 - but faced profit booking and closed at the upper edge of the 'triangle'. It has since corrected to the lower edge of the 'triangle'.
On Nov 30, OPEC, and some non-OPEC, oil producers agreed to extend their production cuts till the end of 2018. Bull enthusiasm was short-lived because drillers in USA added two oil rigs - bringing the total count to 749 (highest since September).
Daily technical indicators are in bullish zones, but showing downward momentum and hinting at a possible downward breakout from the 'triangle'. Wait for the breakout before deciding to buy or sell because a 'triangle' pattern is unreliable.
On longer term weekly chart (not shown), oil's price is consolidating sideways just above its 200 week EMA in long-term bull territory. Weekly MACD and Slow stochastic are inside their overbought zones. RSI formed a small 'double top' reversal pattern inside its overbought zone, and has started to correct.
On Nov 21, the daily bar chart pattern of WTI Crude Oil broke out above the 'symmetrical triangle' pattern within which it was consolidating since the beginning of Nov '17 (refer previous post).
Oil's price rose with good volume support to touch a new high of 59 on Nov 24, but all three daily technical indicators touched lower tops. The negative divergences triggered a pullback towards the top of the 'triangle'.
After touching an intra-day low of 56.75 on Nov 29, oil's price recovered to touch a slightly lower top of 58.90 on Dec 1. The entire trading from Nov 21 onwards appears to be forming another 'symmetrical triangle' pattern.
All three EMAs are rising, and oil's price is trading above them in a bull market. Daily technical indicators are in bullish zones after correcting overbought conditions, but are not showing any upward momentum.
Expect some more consolidation before another breakout can occur. Logically, the breakout should be upwards because oil's price is in a bull market. However, it is better to wait for the breakout because a 'triangle' pattern is unreliable.
On longer term weekly chart (not shown), oil's price made a brief foray above its sliding 200 week EMA, but has slipped down to close just below it. The 20 week and 50 week EMAs are rising towards the 200 week EMA. Weekly MACD and Slow stochastic are in their overbought zones. RSI has started correcting down from its overbought zone.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil has been consolidating sideways within a 'symmetrical triangle' pattern since the beginning of Nov '17. The rising 20 day EMA has provided good downside support.
On Dec 1, oil's price had an intra-day breakout above the 'triangle' - touching a high of 64.30 - but faced profit booking and closed at the upper edge of the 'triangle'. It has since corrected to the lower edge of the 'triangle'.
On Nov 30, OPEC, and some non-OPEC, oil producers agreed to extend their production cuts till the end of 2018. Bull enthusiasm was short-lived because drillers in USA added two oil rigs - bringing the total count to 749 (highest since September).
Daily technical indicators are in bullish zones, but showing downward momentum and hinting at a possible downward breakout from the 'triangle'. Wait for the breakout before deciding to buy or sell because a 'triangle' pattern is unreliable.
On longer term weekly chart (not shown), oil's price is consolidating sideways just above its 200 week EMA in long-term bull territory. Weekly MACD and Slow stochastic are inside their overbought zones. RSI formed a small 'double top' reversal pattern inside its overbought zone, and has started to correct.
1 comment:
Oil investors don’t need to panic: Goldman Sachs
https://economictimes.indiatimes.com/markets/commodities/news/oil-investors-dont-need-to-panic-goldman-sachs/articleshow/61940784.cms
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