Tuesday, March 27, 2018

WTI and Brent Crude Oil charts: run up against resistance zones

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil found support at the 60 level and rallied past its 20 day and 50 day EMAs. On Tue. Mar 20, oil's price breached the down trend line (refer previous post) with good volume support.

The rally continued but faced resistance from the lower edge of the 'resistance zone' (between 66 & 67) on Fri. Mar 23. 

On Mon. Mar 26, oil's price touched an intra-day high of 66.55 but closed lower - forming a 'reversal day' bar that often marks an intermediate top.

Daily technical indicators are in bullish zones. MACD is rising above its signal line. RSI is moving sideways. Slow stochastic is turning down inside its overbought zone, and can trigger a dip towards its rising 20 day EMA.

The number of active US oil rigs rose to a 3 yr high of 804 last week, which can keep a lid on rising oil prices.

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory, but maybe forming a 'double top' reversal patternWeekly technical indicators are in bullish zones but only Slow stochastic is showing upward momentum.

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil broke out above its 20 day and 50 day EMAs on Mar 16, and breached the down trend line (refer previous post) with good volume support.

The rally in oil's price continued the following week but ran up against resistance from the lower edge of the 'resistance zone' (between 70 & 71.30).

On Mon. Mar 26, oil's price touched an intra-day high of 70.40 but closed lower - forming a 'reversal day' bar that often marks an intermediate top. 

Daily technical indicators are in bullish zones. MACD is rising above its signal line. RSI is moving sideways. Slow stochastic is turning down inside its overbought zone, and can trigger a dip towards its 20 day EMA.

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory, but maybe forming a 'double top' reversal patternWeekly MACD and RSI are moving sideways in bullish zones. Slow stochastic is rising in bullish zone.

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