WTI and Brent Crude Oil charts: plunge headlong into bear markets


how to do bitcoin trading

WTI Crude Oil chart

Despite rumours of a production cut by Saudi Arabia, the daily bar chart pattern of WTI Crude Oil continued its steep correction from its Oct ’18 top – touching a 52 week low of 50.10 on Nov 26, almost a 35% correction.

The ‘death cross’ of the 50 day EMA below the 200 day EMA (marked by grey oval) has technically confirmed a bear market. Bears have been using a ‘sell on rise’ strategy to devastating effect.

A production cut is expected when OPEC meets in Vienna next week amid worries over a US-China trade war, a supply glut and demand slowdown.

Daily technical indicators are looking quite oversold. MACD is falling below its signal line deep inside its oversold zone. RSI has remained inside its oversold zone since the beginning of Nov ’18. Slow stochastic has remained inside its oversold zone for almost six weeks. All technical bounces are facing selling pressure.

On longer term weekly chart (not shown), oil’s price closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are looking oversold. MACD is falling below its signal line in oversold zone. RSI is trying to emerge from its oversold zone. Slow stochastic is well inside its oversold zone, but has stopped falling.

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil has corrected 33% from its Oct 4 top, and plunged headlong into a bear market. 

Oil’s price touched a 52 week low of 58.40 on Nov 23, but bounced up to close above 60 on Nov 26. The imminent ‘death cross’ of the 50 day EMA below the 200 day EMA will technically confirm a bear market.

Daily technical indicators are looking quite oversold. MACD is falling below its signal line deep inside its oversold zone. RSI has remained inside its oversold zone for the past three weeks. Slow stochastic has remained inside its oversold zone for almost six weeks. 

Bears have been using all technical bounces to sell, and may do so again. However, the price fall has been quite steep. Some consolidation around current levels – if not a rally – can be expected.

On longer term weekly chart (not shown), oil’s price closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are looking bearish and oversold. MACD is below its signal line and has dropped to the edge of its oversold zone. RSI is trying to emerge from its oversold zone. Slow stochastic is well inside its oversold zone, but has stopped falling.

news forex trading

forex no deposit bonus

Leave a Reply

Your Name (required)

Your Email (required)


Your Message