WTI Crude Oil chart
Some consolidation or correction was expected in the previous post on the daily bar chart pattern of WTI Crude Oil, due to overbought technical indicators which were showing negative divergences.
Oil's price initially corrected to an intra-day low of 63.67 on Jan 31; bounced up after receiving support from its 20 day EMA, and closed higher - forming a 'reversal day' bar (lower low, higher close).
By touching a lower top of 66.30 on Feb 2 and closing lower, oil's price formed a 'reversal day' bar (slightly higher high, lower close) and a small 'double top' reversal pattern.
That was a trigger for bears to go on the rampage. Oil's price dropped vertically below its 20 day and 50 day EMAs, with strong volumes, to an intra-day low of 58 on Fri. Feb 9 - falling nearly 12.5% in a week.
Daily technical indicators are looking bearish and a bit oversold. That led to a technical bounce on Mon. Feb 12, and the formation of an 'inverted hammer' candlestick pattern, which can cause a pullback towards the 50 day EMA.
Iran announced plans to boost production and US crude output hit record highs, adding to concerns about a sharp rise in global supplies.
On longer term weekly chart (not shown), oil's price pulled back sharply to its 200 week EMA and bounced up a little after receiving support. Weekly technical indicators are correcting overbought conditions and showing downward momentum. Some more correction is likely.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil closed just below its 20 day EMA on Jan 30, but formed a 'reversal day' bar (lower low, higher close) on Jan 31 and bounced up to touch an intra-day high of 70 on Feb 2.
Formation of another 'reversal day' bar (slightly higher high, much lower close) triggered a sharp correction below the 20 day and 50 day EMAs to an intra-day low of 61.77 - a fall of 13.3% from the Jan 25 high of 71.28.
Daily technical indicators are looking bearish and oversold. Oil's price formed an 'inverted hammer' candlestick pattern on Mon. Feb 12. A technical bounce is a possibility.
Bears are likely to 'sell on rise'. A test of support from the 200 day EMA may be on the cards.
On longer term weekly chart (not shown), oil's price has pulled back sharply to its 200 week EMA. Weekly technical indicators have corrected overbought conditions and are showing downward momentum - hinting at more correction.
Some consolidation or correction was expected in the previous post on the daily bar chart pattern of WTI Crude Oil, due to overbought technical indicators which were showing negative divergences.
Oil's price initially corrected to an intra-day low of 63.67 on Jan 31; bounced up after receiving support from its 20 day EMA, and closed higher - forming a 'reversal day' bar (lower low, higher close).
By touching a lower top of 66.30 on Feb 2 and closing lower, oil's price formed a 'reversal day' bar (slightly higher high, lower close) and a small 'double top' reversal pattern.
That was a trigger for bears to go on the rampage. Oil's price dropped vertically below its 20 day and 50 day EMAs, with strong volumes, to an intra-day low of 58 on Fri. Feb 9 - falling nearly 12.5% in a week.
Daily technical indicators are looking bearish and a bit oversold. That led to a technical bounce on Mon. Feb 12, and the formation of an 'inverted hammer' candlestick pattern, which can cause a pullback towards the 50 day EMA.
Iran announced plans to boost production and US crude output hit record highs, adding to concerns about a sharp rise in global supplies.
On longer term weekly chart (not shown), oil's price pulled back sharply to its 200 week EMA and bounced up a little after receiving support. Weekly technical indicators are correcting overbought conditions and showing downward momentum. Some more correction is likely.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil closed just below its 20 day EMA on Jan 30, but formed a 'reversal day' bar (lower low, higher close) on Jan 31 and bounced up to touch an intra-day high of 70 on Feb 2.
Formation of another 'reversal day' bar (slightly higher high, much lower close) triggered a sharp correction below the 20 day and 50 day EMAs to an intra-day low of 61.77 - a fall of 13.3% from the Jan 25 high of 71.28.
Daily technical indicators are looking bearish and oversold. Oil's price formed an 'inverted hammer' candlestick pattern on Mon. Feb 12. A technical bounce is a possibility.
Bears are likely to 'sell on rise'. A test of support from the 200 day EMA may be on the cards.
On longer term weekly chart (not shown), oil's price has pulled back sharply to its 200 week EMA. Weekly technical indicators have corrected overbought conditions and are showing downward momentum - hinting at more correction.
1 comment:
Opec's oil nightmare is already coming true
https://economictimes.indiatimes.com/markets/commodities/views/view-opecs-oil-nightmare-is-already-coming-true/articleshow/62871831.cms
Post a Comment