XM does not provide services to residents of the United States of America.

Technical Analysis – WTI crude oil fails to improve upside move



  • WTI crude finds tough obstacle at 200-day SMA

  • Technical oscillators head south

WTI crude oil returned above the medium-term ascending trend line, hitting the strong 200-day simple moving average (SMA) at 79.36 after bouncing off the four-month low of 72.46.

The technical oscillators are indicating a negative retracement in the short-term view. The RSI is sloping slightly down near the 50 level, while the stochastic oscillator posted a bearish crossover between the %K and %D lines in the overbought area.

If the market has a successful attempt above the 200-day SMA and the near-term downtrend line, it may challenge the 50-day SMA at 79.86 ahead of the 80.63 barrier. Above this area, the 84.45 obstacle and the almost six-month high of 87.00 could be the levels that may change the outlook back to a bullish one.

On the flip side, if the market dives below the 20-day SMA and the rising trend line, immediate support could come from 72.46 and the 71.50 bar.

To sum up, oil prices are creating an upside recovery but as the market remains beneath the 200-day SMA and the short-term downtrend line, the bias is still titled to the downside.  

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.