Technical Analysis – WTI futures breach 7-year high, uptrend intact
- Anthony Charalambous
WTI oil futures are struggling to some extent to boost the one-month uptrend, which began from the 66.12 level, even after ticking slightly above the 7-year high of 85.39. That said, a price close north of the 7-year high would be the fuel required to reinforce upside momentum. Furthermore, the climbing simple moving averages (SMAs) are nurturing the positive structure.
The rising Ichimoku lines are implying that bullish forces remain robust, while the short-term oscillators are promoting a positive preference in the commodity. The MACD, some distance north of the zero mark, has nudged back above its relatively flattened red trigger line, while the RSI is improving over its 70 level. The stochastic oscillator is on the bullish camp and the current dip in the %K line is reflecting buyers’ efforts to overcome the 7-year high.
In the positive scenario, a definitive price close north of the 7-year high of 85.39 could bring the 86.39 resistance barrier into play. If the price advances further, resistance may show face between the 88.17-89.55 region, which formed over September and November 2014. Overcoming this boundary too, the price could then propel for the 91.77 high, identified in the early part of October 2014.
If the 7-year high curbs improvements, downside friction may emanate from the red Tenkan-sen line at 84.63 and the nearby 82.84-83.49 support border. If a stronger price pullback unfolds, the price may then target the 50-period SMA at 81.38, adjacent to the Ichimoku cloud’s upper surface and the 80.37-80.92 obstacle. Sinking further, traders’ attention may then shift toward the 100-period SMA at 78.73, overlapping the cloud’s lower band.Summarizing, WTI oil futures are sustaining a bullish bias above the 82.84-83.49 support band and the SMAs. For negative tendencies to spark concerns about the latest uptrend, the price would need to slide beneath the cloud.
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.