WTI crude oil traded higher yesterday and continued marching north today as well, breaking above last Thursday’s high of 62.20, thereby confirming a forthcoming higher high. However, did not move much higher and pulled back to settle near that barrier. Overall, the black liquid trades well above the upside support line drawn from the low of January 4th, and thus, we would consider the near-term outlook to be positive.
The retreat may continue for a while more, but we see decent chances for the bulls to take charge again from near the 60.95 barrier, marked by the high of February 15th. If so, we may see the bulls targeting once more the 62.20 hurdle, where a decisive break may, this time, push the battle towards the high of January 3rd, 2020, at 64.10. Slightly higher we have the peak of January 6th, 2020, which may provide resistance if the 64.10 fails to do so.
Looking at our short-term oscillators, we see that the RSI turned down after hitting its 70 line, while the MACD lies above both its zero and trigger lines. Both indicators detect upside speed, but the fact that the RSI has turned down after hitting 70 adds to our view that a small setback may be looming before the next positive leg.
Now, in case the price falls below 60.25, which is Friday’s inside swing high, then we will start examining the likelihood of a deeper correction to the downside. The bears may temporarily take control and push WTI towards Friday’s low, at 58.55. A clear break below that barrier may extend the fall towards the low of February 12th, at 57.35, or towards the aforementioned upside line.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.07% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.