Chart of the Week: WTI on the verge of significant decline?
Premium|Take advantage of 75% OFF on your first month.
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 75% OFF!
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- WTI bears are stepping in at monthly resistance, and a downtrend is expected.
- A retest of daily resistance could be on the cards first.
The price of oil is retreating from cycle highs with a number of bearish fundamentals in play.
From a technical perspective, the price is stacking up to be considerably bearish as follows:
Monthly chart
The monthly chart is showing that the price has met resistance and is being rejected.
Bulls are taking profits, and this could lead to a significant sell-off to the prior resistance that meets the 50% mean reversion and the 61.8% Fibonacci levels between $67.10 and $64.80.
Weekly chart
The weekly chart shows this more clearly within the range of the mid-March weekly candle.
Daily chart
Meanwhile, from a daily perspective, the price would be expected to retest the prior lows in the $72.50s considering the M-formation:
The lows also have a confluence with the 50% mean reversion of the current bearish impulse:
This area would, therefore, be expected to act as a strong level of resistance and lead to an onward downside continuation in the coming week:
The targetted area is between the $67.50s and $65.30s.
- WTI bears are stepping in at monthly resistance, and a downtrend is expected.
- A retest of daily resistance could be on the cards first.
The price of oil is retreating from cycle highs with a number of bearish fundamentals in play.
From a technical perspective, the price is stacking up to be considerably bearish as follows:
Monthly chart
The monthly chart is showing that the price has met resistance and is being rejected.
Bulls are taking profits, and this could lead to a significant sell-off to the prior resistance that meets the 50% mean reversion and the 61.8% Fibonacci levels between $67.10 and $64.80.
Weekly chart
The weekly chart shows this more clearly within the range of the mid-March weekly candle.
Daily chart
Meanwhile, from a daily perspective, the price would be expected to retest the prior lows in the $72.50s considering the M-formation:
The lows also have a confluence with the 50% mean reversion of the current bearish impulse:
This area would, therefore, be expected to act as a strong level of resistance and lead to an onward downside continuation in the coming week:
The targetted area is between the $67.50s and $65.30s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.