WTI outlook: Bears are taking a breather after the latest acceleration

Slobodan Drvenica Windsor Brokers

WTI

Bears are taking a breather after the latest bearish acceleration in past three days (oil price was down 5%) deflated by easing tensions in the Middle East and rise in US crude stocks (API report).

Oversold daily studies and Tenkan-Kijun-sen turned sideways, suggesting that bears are running out of steam, which may prompt traders for a partial profit-taking.

The notion is supported by the fact that oil price has repeatedly failed to register a daily close below June 4 low ($72.46).

This marks solid support, and another bounce may occur, following a triple failure in early August.

Upticks face initial resistances at $74.00/33, followed by $75.00/44, with $76.00 zone (converged 10/20DMA’s / 4-hr Ichimoku cloud base) expected to cap and mark a healthy correction.

Eventual close below $72.46 pivot and $71.66 (Aug 5 spike low) to unmask psychological $70 support.

Res: 74.00; 74.33; 75.00; 75.44.
Sup: 72.46; 72.19; 71.66; 71.00.

Interested in WTI technicals? Check out the key levels

1. R3 75.82
2. R2 75.04
3. R1 74.03
PP 73.25
1. S1 72.23
2. S2 71.45
3. S3 70.44

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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