WTI and Brent Crude Oil charts: overhead resistances can stall the rallies for a while


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WTI Crude Oil chart

The daily bar chart pattern of WTI Crude Oil has broken out above its 200 day EMA into bull territory. The possibility was mentioned in the previous post. 

The zone between 62 and 64 had acted as a support zone during Apr-Aug ’18. It is likely to act as a resistance zone for a while.

Daily technical indicators are looking bullish. MACD is trying to cross above its signal line in bullish zone. RSI is is poised to enter its overbought zone. Slow stochastic is inside its overbought zone. 

All three indicators are showing negative divergences by failing to rise higher with oil’s price. Some consolidation or correction is possible before oil’s price can overcome the resistance zone.

On longer term weekly chart (not shown), oil’s price closed above its three weekly EMAs in long-term bull territory after 5 months. Weekly technical indicators are looking bullish. MACD is rising above its signal line towards neutral zone. RSI is moving above its 50% level. Slow stochastic is well inside its overbought zone, and can trigger some correction/consolidation.

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil has broken out convincingly above its 200 day EMA (with good volume support) and appears headed for the resistance zone between 70 and 72.

Daily technical indicators are in bullish zones but not showing much upward momentum. MACD is below its sliding signal line in bullish zone. RSI is moving up towards its overbought zone. Slow stochastic has fallen from its overbought zone once again. 

All three indicators are showing negative divergences by touching lower tops though oil’s price has moved higher. Some consolidation or correction is possible before oil’s price can move above the resistance zone.

On longer term weekly chart (not shown), oil’s price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking bullish and showing upward momentum.

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