Tuesday, July 26, 2016

WTI and Brent Crude Oil charts: slip back into bear territories

WTI Crude Oil chart


The following remarks were made in the previous post on the daily bar chart pattern of WTI Crude Oil: "Daily technical indicators are in bearish zones and showing downward momentum - suggesting a possible break below the 200 day EMA towards the zone between 40-42."

Note that oil's price traded below its 20 day and 50 day EMAs for 10 trading sessions in a row, receiving good support from its 200 day EMA before finally breaking down and closing at 43.

All three daily technical indicators are in bearish zones and showing downward momentum - hinting at some more correction. Slow stochastic is inside its oversold zone, and showing positive divergence by not falling lower with oil's price.

A pullback towards the 200 day EMA is likely. Bears may use the opportunity to sell again.

On longer term weekly chart (not shown), oil's price dropped below its 20 week and 50 week EMAs after forming a small 'rounding top' reversal pattern. It is trading well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are looking bearish and showing downward momentum.

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil made a valiant effort to return to bull territory, but failed to overcome strong resistance from its falling 20 day EMA.

Oil's price has breached its 200 day EMA once again, and closed below the 45 level. Daily technical indicators are looking bearish and showing downward momentum.

More correction is on the cards. Slow stochastic is showing positive divergence by not falling lower with oil's price. That can lead to a pullback to the 200 day EMA.

On longer term weekly chart (not shown), oil's price has dropped below its 20 week and 50 week EMAs. It continues to trade well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are looking bearish and showing downward momentum.

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