Thursday, February 28, 2019

WTI and Brent Crude Oil charts: overcome resistance zones but remain below 200 day EMAs

WTI Crude Oil chart


Just when it appeared that bears were getting the upper hand, the daily bar chart pattern of WTI Crude Oil rallied smartly past its 20 day and 50 day EMAs and the 'support/resistance zone' (between 53 and 55).

The bullish fervour didn't last long. The rally failed to reach its sliding 200 day EMA, and pulled back to the 'support/resistance zone' before bouncing up. Such a pullback usually provides a buying opportunity.

Oil's price needs to close convincingly above the Fibonacci resistance zone between 59 and 63 (which are the 50% and 61.8% retracement levels of the fall from the Oct '18 top of 76 to the Dec '18 low of 42) before bulls can regain control of the chart.

Daily technical indicators are in bullish zones but not showing much upward momentum. MACD is seeking support from its signal line in bullish zone. RSI is above its 50% level. Slow stochastic has fallen from its overbought zone. Some consolidation is likely before oil's price can attempt to move higher.

On longer term weekly chart (not shown), oil's price closed above its 20 week EMA but below its 50 week and 200 week EMAs in long-term bear territory. Weekly technical indicators are looking neutral to bullish. MACD is rising above its signal line in bearish zone. RSI is facing resistance from its 50% level. Slow stochastic has entered its overbought zone. 

Brent Crude Oil chart


After receiving good support from its rising 20 day EMA and the 61 level, the daily bar chart pattern of Brent Crude Oil moved smartly above the 'support/resistance zone' between 61 and 63.

Oil's price faced strong resistance from its sliding 200 day EMA, and dropped sharply towards its rising 20 day EMA before bouncing up.

For bulls to regain control of the chart, oil's price needs to close convincingly above the Fibonacci resistance zone between 68 and 72 (which are the 50% and 61.8% retracement levels of the fall from the Oct '18 top of 86 to the Dec '18 low of 50).

Daily technical indicators are in bullish zones but not showing much upward momentum. MACD is seeking support from its rising signal line in bullish zone. RSI is above its 50% level. Slow stochastic has fallen from its overbought zone. Some consolidation is likely before oil's price can attempt to move higher.

On longer term weekly chart (not shown), oil's price closed above its 20 week and 200 week EMAs in long-term bull territory, but is facing resistance from its 50 week EMA. 'Death cross' of the 50 week EMA below the 200 week EMA has been averted for now. Weekly technical indicators are looking bullish to neutral.

1 comment:

Subhankar said...

OPEC’s Nemesis, Shale Oil, Is Back

https://www.investing.com/analysis/opecs-nemesis-shale-oil-is-back-200389909