WTI Crude Oil chart
Overbought conditions visible on technical indicators had led to the following comment in the previous post on the daily bar chart pattern of WTI Crude Oil: "Some consolidation can be expected around current prices before oil's price can move higher."
For the next 8 trading sessions, oil's price consolidated sideways as expected. It received strong support from its rising 20 day EMA and the 'support/resistance zone' between 66 & 67 before breaking out past 70.
The three EMAs are rising, and oil's price is trading above them in a bull market. However, the widening gap between the 20 day EMA and the 200 day EMA is a sign of an overbought condition.
Daily technical indicators are looking overbought and showing upward momentum. Some more upside is possible. However, a correction or consolidation may be around the corner.
On longer term weekly chart (not shown), oil's price closed above its three rising weekly EMAs. The 50 week EMA is ready to cross above the 200 week EMA. The 'golden cross' will technically confirm a return to a long-term bull market. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price.
Brent Crude Oil chart
Please note the following comments from the previous post on the daily bar chart pattern of Brent Crude Oil: "All three daily technical indicators are inside their respective overbought zones. Some correction or consolidation is likely."
Oil's price consolidated sideways for the next 8 trading sessions. It bounced up after receiving good support from its rising 20 day EMA and rose to touch a new 3 yr high of 76.34 before closing above 76.
Daily technical indicators are looking overbought, and showing negative divergences by failing to touch new highs with oil's price. Some correction or consolidation is expected.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. The imminent 'golden cross' of the 50 week EMA above the 200 week EMA will technically confirm a return to a long-term bull market. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price.
Overbought conditions visible on technical indicators had led to the following comment in the previous post on the daily bar chart pattern of WTI Crude Oil: "Some consolidation can be expected around current prices before oil's price can move higher."
For the next 8 trading sessions, oil's price consolidated sideways as expected. It received strong support from its rising 20 day EMA and the 'support/resistance zone' between 66 & 67 before breaking out past 70.
The three EMAs are rising, and oil's price is trading above them in a bull market. However, the widening gap between the 20 day EMA and the 200 day EMA is a sign of an overbought condition.
Daily technical indicators are looking overbought and showing upward momentum. Some more upside is possible. However, a correction or consolidation may be around the corner.
On longer term weekly chart (not shown), oil's price closed above its three rising weekly EMAs. The 50 week EMA is ready to cross above the 200 week EMA. The 'golden cross' will technically confirm a return to a long-term bull market. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price.
Brent Crude Oil chart
Please note the following comments from the previous post on the daily bar chart pattern of Brent Crude Oil: "All three daily technical indicators are inside their respective overbought zones. Some correction or consolidation is likely."
Oil's price consolidated sideways for the next 8 trading sessions. It bounced up after receiving good support from its rising 20 day EMA and rose to touch a new 3 yr high of 76.34 before closing above 76.
Daily technical indicators are looking overbought, and showing negative divergences by failing to touch new highs with oil's price. Some correction or consolidation is expected.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. The imminent 'golden cross' of the 50 week EMA above the 200 week EMA will technically confirm a return to a long-term bull market. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price.
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