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

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CRUDE OIL TECHNICAL PRICE FORECAST:

  • 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 TECHNICAL OUTLOOK

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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