Tuesday, February 12, 2019

WTI and Brent Crude Oil charts: counter-trend rallies struggling to overcome resistance zones

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil touched an intra-day high of 55.75 on Feb 4 - its highest level in nearly 3 months - but formed a 'reversal day' bar (higher high, lower close) that brought bears to the fore.

Oil's price corrected below its converging 20 day and 50 day EMAs and closed below the 'Support/Resistance zone' (between 53 and 55) that is proving to be a tough hurdle for bulls.

Daily technical indicators are looking bearish. MACD has crossed below its signal line after forming a 'rounding top' reversal pattern in bullish zone. RSI has slipped below its 50% level in neutral zone. Slow stochastic is falling below its 50% level.

Some more correction or consolidation is likely.

On longer term weekly chart (not shown), oil's price faced strong resistance from its falling 20 week EMA and dropped to close well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are looking neutral to bearish

Brent Crude Oil chart



The daily bar chart pattern of Brent Crude Oil touched an intra-day high of 63.63 on Feb 4 - its highest level in 2 months - but formed a 'reversal day' bar (higher high, lower close) that poured cold water on bullish hopes.

Oil's price has been consolidating sideways with a downward bias since then, and closed inside the 'Support/Resistance zone' (between 61 and 63) that bulls are finding very difficult to overcome.

Daily technical indicators are looking bearish to neutralMACD is moving sideways in bullish zone and has merged with its signal line. RSI is sliding down towards its 50% level. Slow stochastic is falling towards its 50% level.

Expect some more consolidation or correction.

On longer term weekly chart (not shown), oil's price closed below its three weekly EMAs in long-term bear territory. 'Death cross' of the 50 week EMA below the 200 week EMA will technically confirm a long-term bear market. Weekly technical indicators are looking bearish to neutral.

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