Tuesday, March 13, 2018

WTI and Brent Crude Oil charts: in bull market down trends

WTI Crude Oil chart


After forming a small 'double bottom' at 58 last month and rallying to 64 (refer previous post), the daily bar chart pattern of WTI Crude Oil faced strong resistance from the (purple) down trend line.

Since then, oil's price has been oscillating about its 20 day and 50 day EMAs - forming a bearish pattern of 'lower tops, lower bottoms'. The Feb '18 low of 58 has not been tested yet - keeping bullish hopes alive.

Oil's price closed below its 20 day and 50 day EMAs, but well above its rising 200 day EMA in a bull market. Daily technical indicators are in bearish zones - hinting at some more downside.

Surging US output on the back of onshore shale oil production is keeping a lid on oil's price.

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territoryWeekly technical indicators are in bullish zones but showing downward momentum. 

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil had formed a small 'double bottom' reversal pattern at 61.76 last month and rallied to 67.90, only to face strong resistance from the (purple) down trend line.

Oil's price has dropped below its entangled 20 day and 50 day EMAs, but is trading well above its rising 200 day EMA in a bull market.

Daily technical indicators are in bearish zones, and not showing any upward momentum. Some more correction or consolidation below the down trend line is likely.

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territoryWeekly MACD and RSI are showing downward momentum in bullish zones. Slow stochastic is in bearish zone.

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