Tuesday, January 30, 2018

WTI and Brent Crude Oil charts: bull rallies take a breather

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil rose to touch a new high of 66.66 on Thu. Jan 25, but formed a 'reversal day' bar (higher high, lower close) that temporarily stalled the bull rally.

A fall in the US Dollar index below 90 appears to have aided the rally. All three EMAs are rising, and oil's price is trading above them in a bull market.

Daily technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price. MACD and RSI have formed 'double top' reversal patterns inside their overbought zones. Slow stochastic touched a lower top.

Some more consolidation or correction is likely. Simultaneous economic growth in several large countries is driving demand and keeping prices high.

On longer term weekly chart (not shown), oil's price closed well above its three weekly EMAs in long term bull territoryWeekly technical indicators are looking overbought. RSI and Slow stochastic are showing negative divergences by failing to touch new highs with oil's price. 

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil rose to touch a new high of 71.28 on Thu. Jan 25, but formed a 'reversal day' bar (higher high, lower close) that triggered a correction which tested support from the 20 day EMA.

Oil's price is trading well above its rising 50 day and 200 day EMAs in a bull market. Daily technical indicators showed negative divergences by failing to touch new highs with oil's price, and have started correcting overbought conditions.

Some more correction or consolidation is possible. Expect support from the zone between 66 & 68. 

On longer term weekly chart (not shown), oil's price closed well above its three weekly EMAs in long-term bull territoryWeekly technical indicators are starting to correct overbought conditions. 

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