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Tuesday, June 9, 2015

WTI and Brent Crude Oil charts: bears regaining control?

WTI Crude chart

WTI Crude_Jun0915

The daily bar chart pattern of WTI Crude continued its sideways consolidation with a downward bias after touching a high of 62.50 on May 6 ‘15. The rising 50 day EMA has provided good support so far. Strong volumes on a couple of up days indicate some buying interest.

Oil’s price is trading below its falling 200 day EMA in a bear market. The 20 day EMA is forming a bearish ‘rounding top’ pattern. Looks like the bear market rally from the Mar ‘15 low is coming to an end.

Daily technical indicators are looking bearish. MACD is falling below its signal line in positive zone. RSI has slipped below its 50% level. Slow stochastic has dropped sharply below its 50% level.

OPEC’s decision to stick to current production levels may have taken the wind out of bullish sails.

On longer term weekly chart (not shown), oil’s price has spent 8 weeks above its rising 20 week EMA, but is trading well below its falling 50 week and 200 week EMAs in a long-term bear market. Weekly technical indicators are turning bearish. MACD is rising above its signal line in negative zone, but its upward momentum is slowing down. RSI has just slipped below its 50% level. Slow stochastic is sliding down inside its overbought zone.

Brent Crude chart

BrentCrude_Jun0915

The daily bar chart pattern of Brent Crude oil has been correcting within a downward-sloping channel after touching a high of 69.50 on May 6 ‘15. All three EMAs are moving down and oil’s price is trading below them in a bear market.

The rally from the Jan ‘15 low may be coming to an end – despite occasional buying support. Bears are selling at every rise.

Daily technical indicators are looking bearish. MACD is falling below its signal line, and entered negative zone. RSI is below its 50% level, but its downward momentum is not strong. Slow stochastic has dropped sharply towards its oversold zone.

On longer term weekly chart (not shown), oil’s price has again closed below all three weekly EMAs in a long-term bear market after spending 7 weeks above its 20 week EMA. Weekly technical indicators are turning bearish. MACD is above its signal line in negative zone, but its upward momentum has stalled. RSI is falling below its 50% level. Slow stochastic has dropped down sharply from its overbought zone.

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