Technical analysis – WTI Crude Oil eases after bullish wave [Video]

WTI crude oil breaks significant level of 68.90.
Technical oscillators suggest negative momentum.

Melina Deltas, CFTe XM

WTI crude oil has gained some notable ground after the selling interest toward the almost two-year low of 65.36, surpassing the crucial resistance levels of the 23.6% Fibonacci retracement level of the down leg from 80.59 to 65.36 at 68.90 and the long-term ascending trend line.

However, from a technical perspective, the momentum oscillators show weak movement. The RSI is pointing slightly down above the 50 territory, while the stochastic posted a bearish crossover between its %K and %D lines in the overbought region.

If the commodity falls below 68.90, it may challenge the 20-day simple moving average (SMA) at 68.00 before entering the descending channel. Lower, the 65.70 and 65.36 supports may cause negative actions.

On the other hand, a continuation of the up leg could reclaim the 38.2% Fibonacci of 71.20, which holds near the 50-day SMA, before battling with the 71.50 barrier. If the bulls continue to buy, the 50.0% Fibonacci and the 200-day SMA around 73.00 may prove to be tough obstacles.

All in all, WTI crude oil showed some improvement in the preceding days, but the technical oscillators suggest a negative bias.

Author

Melina Deltas, CFTe

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.

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