WTI Under Pressure as 95.00 Key Level and 200-SMA Provide Technical Hurdles



  • Technical Outlook: Neutral.
  • WTI Crude Oil Prices Gained as Much as 10% Before Finding Resistance at 95.00 Key Level.
  • Prices Retest the 200-SMA and Rejected for the Second Time in August.


WTI crude oil seems set to submit per week of beneficial properties which comes on the again of a barely bearishweek, highlighting the present sideways motion of the commodity on bigger timeframes.WTI crude oil has as soon as once more bounced off the 61.8% fib stage this week earlier than bouncing and take a look ating the 200-SMA on the day by day chart after falling beneath it to begin the month. We have now seen our second take a look at of the SMA and rejected it as soon as extra as it rests on the important thing psychological stage round 95.00 as properly as the 50% fib stage.

We have spent nearly all of August buying and selling between the 50-61.8% fib ranges. We noticed a break earlier this week of a falling wedge sample but didn’t maintain momentum to interrupt above the 200-SMA, 50% fib stage, and the important thing psychological 95.00 stage. The day by day chart has additionally proven indicators of bullish value motion as we’ve damaged bearish construction by creating a brand new excessive. We have retreated since then with Thursday’s day by day candle closing as a bearish engulfing sample indicating the chance that costs fall additional within the coming days. Should we get a sustained decline to start the week we might see value discover assist across the 89-91.00 value stage which might additionally see us create an inverse head and shoulders sample with the early month low and mid-month low appearing as the left shoulder and head respectively. This in fact might take a number of days to play out however is price keeping track of.

Given the combined indicators from a technical perspective coupled with ever altering sentiment, the week forward guarantees to be considered one of curiosity. In order to verify a bullish transfer larger, we would want to see a sustained break above the 200-SMA with a retest and bounce confirming bullish momentum and potential additional upside. A day by day candle shut beneath 89.00 might very properly see us take out the 16th August low at 85.54.

WTI Crude Oil D Chart

Source: Buying and sellingView, ready by Zain Vawda

— Written by Zain Vawda for DailyFX.com

Contact and comply with Zain on Twitter: @zvawda

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