WTI Crude Oil chart
The following comment was made in the previous post on the daily bar chart pattern of WTI Crude Oil: "Expect bears to remain in control despite the OPEC production cut because of demand slow down."
Though the 'death cross' (marked by grey ellipse) had technically confirmed a bear market, bulls tried for the better part of two weeks to put a floor on oil's price at 50.
Strong resistance from the plummeting 20 day EMA proved insurmountable. The temporary support at 50 was breached. Oil's price dropped sharply to close at 46.24 on Tue. Dec 18.
That was a signal for bulls to turn tail and run. Oil's price dropped to its lowest level in 18 months, and closed below 43.
Daily technical indicators are looking oversold and showing downward momentum. Slow stochastic is falling deeper inside its oversold zone. MACD and RSI are showing positive divergences by touching higher lows inside their respective oversold zones.
Some price consolidation can be expected, as bulls may try to defend the long-term support/resistance level of 42. If 42 gets breached, oil's price can drop towards 38.
On longer term weekly chart (not shown), oil's price closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are falling inside their respective oversold zones. The impending 'death cross' of the 50 week EMA below the 200 week EMA will technically confirm a long-term bear market.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil shows the failure of a determined effort by bulls to defend the support level of 58. Strong resistance from the falling 20 day EMA put paid to bullish hopes.
Oil's price fell steeply to close below 51 - a level last touched back in Aug '17. Bears may not be done yet. If the long-term support at 50 gets breached, oil's price can drop to 45.
Daily technical indicators are showing downward momentum inside oversold zones. MACD and RSI are showing positive divergences by touching higher bottoms inside their respective oversold zones. Some price consolidation or pullback may be on the cards.
On longer term weekly chart (not shown), oil's price closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are falling inside their respective oversold zones. The 'death cross' of the 50 week EMA below the 200 week EMA will technically confirm a return to a long-term bear market.
The following comment was made in the previous post on the daily bar chart pattern of WTI Crude Oil: "Expect bears to remain in control despite the OPEC production cut because of demand slow down."
Though the 'death cross' (marked by grey ellipse) had technically confirmed a bear market, bulls tried for the better part of two weeks to put a floor on oil's price at 50.
Strong resistance from the plummeting 20 day EMA proved insurmountable. The temporary support at 50 was breached. Oil's price dropped sharply to close at 46.24 on Tue. Dec 18.
That was a signal for bulls to turn tail and run. Oil's price dropped to its lowest level in 18 months, and closed below 43.
Daily technical indicators are looking oversold and showing downward momentum. Slow stochastic is falling deeper inside its oversold zone. MACD and RSI are showing positive divergences by touching higher lows inside their respective oversold zones.
Some price consolidation can be expected, as bulls may try to defend the long-term support/resistance level of 42. If 42 gets breached, oil's price can drop towards 38.
On longer term weekly chart (not shown), oil's price closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are falling inside their respective oversold zones. The impending 'death cross' of the 50 week EMA below the 200 week EMA will technically confirm a long-term bear market.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil shows the failure of a determined effort by bulls to defend the support level of 58. Strong resistance from the falling 20 day EMA put paid to bullish hopes.
Oil's price fell steeply to close below 51 - a level last touched back in Aug '17. Bears may not be done yet. If the long-term support at 50 gets breached, oil's price can drop to 45.
Daily technical indicators are showing downward momentum inside oversold zones. MACD and RSI are showing positive divergences by touching higher bottoms inside their respective oversold zones. Some price consolidation or pullback may be on the cards.
On longer term weekly chart (not shown), oil's price closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are falling inside their respective oversold zones. The 'death cross' of the 50 week EMA below the 200 week EMA will technically confirm a return to a long-term bear market.
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