Crude Oil Price Technical Forecast: WTI Correction Nears Completion


Crude Oil Technical Forecast: WTI Weekly Trade Levels

Crude oil costs plunged greater than 30% off the yearly highs with the decline now approaching key ranges of technical help – we’re looking out for a potential exhaustion low within the weeks forward. These are the up to date targets and invalidation ranges that matter on the oil value weekly technical chart. Review my newest Strategy Webinar for an in-depth breakdown of this crude oil value technical setup and extra.

Crude Oil Price Chart – WTI Weekly

Chart Prepared by Michael Boutros, Technical Strategist; Crude Oil (WTI) on Tradingview

Notes: In my final Crude Oil Weekly Technical Forecast we famous that the WTI, “correction threatens a deeper cut in the weeks ahead- that said, we’re on the lookout for downside exhaustion near key measured levels lower down.” The decline stretched into preliminary help goals on the 100% ext of the June sell-off at 91.86 before rebounding. Just decrease, rests a extra important technical confluence at 85.61-88.01– a area outlined by the 2013 low, the 100% extension of the March decline and the 61.8% Fibonacci retracement of the November rally.

We’re looking out to verify a possible exhaustion low off one among these ranges within the weeks forward IF the broader multi-year oil uptrend is to stay viable. Initial weekly resistance now eyed at 103.19 with broader bearish invalidation now lowered to the June high-week reversal shut / 61.8% retracement at 110.01-111.

Bottom line: The crude oil correction is now probing ranges of curiosity for potential help. From a buying and selling standpoint, zone to cut back parts of short-exposure / decrease protecting stops – losses must be restricted to 85.61 IF value is heading increased with a detailed above 111 wanted to counsel a extra important low was registered this month / mark resumption of the broader uptrend. Keep in thoughts {that a} break under this multi-year uptrend could be technically important and will gas one other bout of accelerated losses in direction of the 2011 lows / 2022 yearly open at 74.94-75.35. The battle strains are drawn heading into shut of the month- keep nimble right here. Review my newest Crude Oil Short-term Technical Outlook for a better have a look at the near-term WTI technical trade ranges.

For a whole breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Analysis sequence on Building a Trading Strategy

Crude Oil Trader Sentiment – WTI Price Chart

Crude Oil Trader Sentiment - WTI Price Chart - USOil Retail Positioning - CL Technical Outlook

  • A abstract of IG Client Sentiment reveals merchants are net-long crude oil – the ratio stands at +1.31 (56.62% of merchants are lengthy) – sometimes weak bearishstudying
  • Long positions are0.96% decrease than yesterday and three.18% increased from final week
  • Short positions are11.03% increased than yesterday and 4.11% increased from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests Crude Oil costs could proceed to fall. Yet merchants are much less net-long than yesterday and in contrast with final week. From a sentiment standpoint, the latest modifications in positioning warn that the present Oil (WTI) value development could quickly reverse increased regardless of the very fact merchants stay net-long.

Active Weekly Technical Charts

— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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