WTI traded higher yesterday, after it hit support below the 76.07 barrier. However, the advance was stopped by the 79.77 hurdle, defined as a resistance by Wednesday’s high. Overall, the black liquid remains above the upside support line drawn from the low of August 20th, and thus, we will consider the short-term picture to still be positive.
A clear break above 79.77 will confirm a forthcoming higher high and may pave the way towards the 82.96 territory, defined as a resistance by the high of October 29th,2014. If that barrier is not able to stop the bulls, then we could see them climbing towards the high of October 16th, near the psychological number of 85.00.
Shifting attention to our short-term oscillators, we see that the RSI, already above 50, has turned up again, while the MACD lies above both its zero and trigger lines. Both indicators detect upside speed and support the notion for a trend continuation in oil prices.
On the downside, we would like to see a dip below 72.95, which provided resistance on September 15th and 16th, before we start examining a bearish trend reversal. A lower low will already be confirmed, while the dip below 72.95 may also confirm the break below the aforementioned upside line. This is when the bears may get encouraged to push the action towards the 69.85 territory, the break of which may open the path towards the 67.60 zone, which acted as a temporary floor between August 26th and September 9th. Another break, below 67.60 could see scope for extensions towards the low of August 9th, at 65.25.
Disclaimer:
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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 analyses 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 analyses and must therefore be viewed by the reader as marketing information. JFD 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. 73.90% 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.
Copyright 2021 JFD Group Ltd.