WTI has been trading in a sideways manner between 68.10 and 69.20 since Friday but it remains above the short-term tentative uptrend line taken from the low of the 16th of August. That day, the black liquid rebounded from near 64.00, the lower end of a broader sideways range that’s been containing the price action since the 10th of April, as well as from the long-term uptrend line drawn from the low of the 21st of June 2017. So, having all these technical signs in mind, we believe that WTI could resume its latest recovery soon.
A clear and decisive break above 69.20 could confirm the case as it would signal a forthcoming higher high on the 4-hour chart. Such a break is likely to set the stage for the psychological round figure of 70.00, which hasn’t been reached for more than a month now. Another move above that hurdle is possible to pave the way towards our next short-term resistance, at around 70.70, marked by the peak of the 13th of July, as well as by the inside swing low of the 6th of the same month.
Shifting attention to our short-term oscillators, we see that the RSI turned up after hitting support slightly above its 50 line, while the MACD, even though below its trigger line, shows signs that it could start bottoming within its positive territory. These indicators corroborate our view that the price could regain some upside momentum soon.
On the downside, we would like to see a clear dip below 67.30 before we abandon the bullish case, at least in the short run. Such a move could confirm a break below the aforementioned short-term uptrend line drawn from the low of the 16th of August and could initially aim for our next support of 66.40. Another dip below 66.40 could trigger more declines, perhaps towards 65.60 or the long-term uptrend line taken from the low of the 21st of June 2017.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.