WTI and Brent Crude Oil charts: in bull markets, but facing bear resistances


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WTI Crude Oil chart

After a bit of sideways consolidation near the upper edge of the ‘support-resistance zone’ (between 62 and 64), the daily bar chart pattern of WTI Crude Oil bounced up to touch a high of 66.60 on Apr 23 – its highest level in nearly 6 months.

The ‘golden cross’ of the 50 day EMA above the 200 day EMA technically confirmed a return to a bull market. However, overbought technical indicators, which showed negative divergences by touching lower tops, triggered a correction.

Oil’s price dropped below the ‘support-resistance zone’ and its 20 day and 50 day EMAs, but bounced up after testing support from its 200 day EMA. Formation of a ‘reversal day’ bar (lower low, higher close) and a pullback inside the ‘support-resistance zone’ ought to encourage bulls.

Daily technical indicators are looking bearish after correcting overbought conditions. MACD is falling below its signal towards neutral zone. RSI has dropped below its 50% level. Slow stochastic has fallen to the edge of its oversold zone. 

Expect volatility and some consolidation in oil prices as the US government threatens to shut down Iran’s oil exports by sending war ships to the Middle East.

On longer term weekly chart (not shown), oil’s price bounced up after receiving strong support from its converging weekly EMAs, and closed in long-term bull territory. Weekly technical indicators are in bullish zones, but not showing much upward momentum. MACD is rising above its signal line. RSI is moving sideways above its 50% level. Slow stochastic has fallen from its overbought zone, and can trigger some consolidation or correction.

Brent Crude Oil chart


After a few days of sideways consolidation near the upper edge of the ‘support-resistance zone’ (between 70 and 72), the daily bar chart pattern of Brent Crude Oil broke out upwards on Apr 22, and rose to touch a 6 months high of 75.60 on Apr 25.

The ‘golden cross’ of the 50 day EMA above the 200 day EMA technically confirmed a return to a bull market. However, overbought technical indicators, and formation of a ‘reversal day’ bar (higher high, lower close), triggered a correction below the ‘support-resistance zone’ and the 20 day and 50 day EMAs.

Oil’s price has since pulled back inside the ‘support-resistance zone’, and is expected to consolidate till Middle Eastern supplies stabilise.

Daily technical indicators are looking bearish to neutral after correcting overbought conditions. MACD is falling below its sliding signal line towards neutral zone. RSI is seeking support from its 50% level. Slow stochastic has fallen below its 50% level. 

On longer term weekly chart (not shown), oil’s price bounced up after testing support from its converging 20 week and 50 week EMAs, and closed in long-term bull territory. Weekly technical indicators are in bullish zones, but not showing much upward momentum. MACD is rising above its signal line. RSI is moving sideways above its 50% level. Slow stochastic has slipped down from its overbought zone, and can trigger some consolidation or correction.

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