Tuesday, January 29, 2019

WTI and Brent Crude Oil charts: resistance zones cap counter- trend rallies

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil managed to move above its 50 day EMA, but retreated after facing strong resistance from the 'support/resistance zone' between 53 and 55.

Oil's price bounced up a bit after getting support from its 20 day EMA, but is trading well below its falling 200 day EMA in a bear market.

Daily technical indicators are turning bearish. MACD is above its signal line in bullish zone, but may be forming a 'rounding top' reversal pattern. RSI is seeking support from its 50% level. Slow stochastic has corrected down from its overbought zone.

US sanctions may curb oil exports from Venezuela, but with China's economy slowing down and ample global supply, a sustained rally in oil's price is unlikely.

On longer term weekly chart (not shown), oil's price closed below its three weekly EMAs in long-term bear territory. Weekly technical indicators are in bearish zones and not showing much upward momentum. The 50 week EMA has just crossed below the 200 week EMA - the 'death cross' technically confirming a long-term bear market.

Brent Crude Oil chart



The daily bar chart pattern of Brent Crude Oil touched an intra-day high of 63.15 on Mon. Jan 21, but could not sustain above the 'support/resistance zone' between 61 and 63.

Oil's price has since closed below its 20 day EMA - and well below its sliding 200 day EMA in a bear market.

Daily technical indicators are looking bearish. MACD is moving sideways above its signal line in bullish zone. RSI has slipped below its 50% level. Slow stochastic has fallen from its overbought zone after forming a 'double top' reversal pattern.

Some more correction and/or consolidation is possible.

On longer term weekly chart (not shown), oil's price closed below its three weekly EMAs in long-term bear territory, but maybe forming a bullish 'inverse head and shoulders' pattern. Weekly technical indicators are in bearish zones but not showing any upward momentum.

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