WTI Crude Oil chart
A pullback towards the 50 day EMA was expected in the previous post on the daily bar chart pattern of WTI Crude Oil due to oversold technical indicators and formation of an 'inverted hammer' candlestick.
Oil's price formed a small 'double bottom' reversal pattern at 58 that turned the expected pullback into a rally. Oil's price rose above its 50 day and 20 day EMAs to the 64 level in bull territory.
Daily technical indicators have turned bullish. MACD has crossed above its signal line and entered bullish zone. RSI has crossed above its 50% level. Slow stochastic is rising towards its overbought zone.
A convincing move above the (purple) down trend line is required if bulls wish to regain control of the chart. However, in a recent forbes.com article, Art Berman has given logical explanations why oil prices are at a crossroads and can settle in the 55-65 range.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in bullish zones after correcting overbought conditions. Only Slow stochastic is showing upward momentum. Some more upside is likely.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil touched an intra-day low of 61.76 on Feb 13 - forming a small 'double bottom' reversal pattern that triggered a pullback towards the converging 20 day and 50 day EMAs.
The pullback turned into a rally. Oil's price climbed into bull territory above its three EMAs, and managed to close above the (purple) down trend line. However, sliding volumes do not augur well for sustainability of the rally.
Daily technical indicators are looking bullish. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level. Slow stochastic is rising towards its overbought zone, and can limit further upside.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators have corrected overbought conditions. Only Slow stochastic is showing some upward momentum.
A pullback towards the 50 day EMA was expected in the previous post on the daily bar chart pattern of WTI Crude Oil due to oversold technical indicators and formation of an 'inverted hammer' candlestick.
Oil's price formed a small 'double bottom' reversal pattern at 58 that turned the expected pullback into a rally. Oil's price rose above its 50 day and 20 day EMAs to the 64 level in bull territory.
Daily technical indicators have turned bullish. MACD has crossed above its signal line and entered bullish zone. RSI has crossed above its 50% level. Slow stochastic is rising towards its overbought zone.
A convincing move above the (purple) down trend line is required if bulls wish to regain control of the chart. However, in a recent forbes.com article, Art Berman has given logical explanations why oil prices are at a crossroads and can settle in the 55-65 range.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in bullish zones after correcting overbought conditions. Only Slow stochastic is showing upward momentum. Some more upside is likely.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil touched an intra-day low of 61.76 on Feb 13 - forming a small 'double bottom' reversal pattern that triggered a pullback towards the converging 20 day and 50 day EMAs.
The pullback turned into a rally. Oil's price climbed into bull territory above its three EMAs, and managed to close above the (purple) down trend line. However, sliding volumes do not augur well for sustainability of the rally.
Daily technical indicators are looking bullish. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level. Slow stochastic is rising towards its overbought zone, and can limit further upside.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators have corrected overbought conditions. Only Slow stochastic is showing some upward momentum.
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