WTI Hits a New 13-month High | Technical Analysis

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.


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Nice, what’s your position entry/stop/profit target?

Hi FOREXunlimited,

This is a pure technical analysis. It’s not a trading signal, neither an investment advice. You can refer to our disclaimer. That’s why we don’t mention entry points, stop losses, or profit targets.

Thank you very much

Ok, thanks for the reply. Just trying to understand your motivation as to why you would post something like this? If you had to boil it down into one sentence, what would it be? Why are you here?

Thanks for the interaction.

To make people aware of our Group and our Research. You can find more articles, including fundamental analysis on our website.

Thank you

Not interested in visiting your website, thanks for the offer though. More interested in understanding how successful your research is and don’t understand why you’d market it if you’re not also sharing the positions you put on and actually “putting your money where your mouth is” for lack of better words.

Take care.