WTI at Key Support- Decision Time


Crude Oil Technical Forecast: WTI Near-term Trade Levels

  • Crude Oil up to date technical trade ranges – Daily & Intraday Charts
  • WTI plunges into key downtrend support- Weekly / month-to-month vary breakouts pending
  • New to Oil Trading? Get began with this Free How to Trade Oil-Beginners Guide

Crude oil costs have plunged right into a important help barrier which has halted the sell-off for the previous two-weeks. This technical help zone stays in focus with the month-to-month vary nonetheless intact into the shut of the week. We’re looking out for the breakout to supply steerage. These are the up to date targets and invalidation ranges that matter on the oil worth technical charts. Review my newest Strategy Webinar for an in-depth breakdown of this crude oil worth technical setup and extra.

Crude Oil Price Chart – WTI Daily

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

Technical Outlook: In my final Crude Oil Short-term Technical Outlook we famous that, “The crude oil sell-off is approaching confluent downtrend support and we’re on the lookout for possible downside exhaustion. From a trading standpoint, look to reduce short-exposure / lower protective stops on a stretch towards 85.61-88.01 IF reached.” WTI dropped into this important help zone the next day with worth persevering with to check this threshold for the previous two weeks. We’re on the lookout for worth inflection off this zone with the rapid short-bias susceptible whereas above. Near-term bearish invalidation now raised to 94.66-95.57– a area outlined by the 23.6% Fibonacci retracement of the June decline, the March / April low-day closes and the 200-day shifting common.

Crude Oil Price Chart – WTI 240min

Crude Oil Price Chart - WTI 240min - USOil Short-term Trade Outlook - CL Technical Forecast

Notes: A more in-depth look at oil worth motion exhibits WTI persevering with to trade throughout the confines of a descending channel with median-line additional highlighting key help this week at 85.61-88.01 (this week’s low registered at 85.70). Note that each the weekly and month-to-month opening-ranges are preserved heading into the shut on Thursday – we’ll be on the lookout for the breakout to supply additional steerage. A topside breach would threaten a bigger restoration in the direction of subsequent resistance targets at the June low (101.52), the 105– pivot zone and the 61.8% retracement / March 9th reversal-close at 109.16/61. A break beneath this key help zone could be extraordinarily damaging from a technical standpoint with such a state of affairs exposing the 2021 excessive day shut at 83.68 and the 2018 excessive / 2012 low at 76.87-77.26.

Bottom line: Bears on notice- Crude oil costs are testing a important help zone we’ve been monitoring for months now – the main focus is on inflection off this threshold with a detailed beneath wanted to maintain the short-bias viable. From a buying and selling standpoint, danger is for draw back exhaustion whereas above 85.61 with a breakout of the weekly / month-to-month vary highs at wanted to counsel a extra vital low was registered this week. Review my newest Crude Oil Weekly Price Forecast for a better look at the long-term WTI technical trade ranges.

For a whole breakdown of Michael’s buying and selling technique, assessment 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 Short-term Technical Outlook

  • A abstract of IG Client Sentiment exhibits merchants are net-long crude oil – the ratio stands at +2.01 (66.77% of merchants are lengthy) – sometimes bearishstudying
  • Long positions are13.54% decrease than yesterday and a pair of.50% decrease from final week
  • Short positions are21.50% greater than yesterday and a pair of.78% greater from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests oil costs (WTI) might proceed to fall. Yet merchants are much less net-long than yesterday and in contrast with final week. From a sentiment standpoint, the current adjustments in positioning warn that the present oil worth development might quickly reverse greater regardless of the very fact merchants stay net-long.

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— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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