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

Technical Analysis – WTI crude oil erases gains below 80.00



  • WTI crude oil finds resistance at 200-day SMA

  • Stochastics and RSI head south

WTI crude oil futures with delivery in July have failed to surpass the 80.00 level once again and are currently returning below the 200-day simple moving average (SMA). The price has been developing within a narrow range of 76.58-80.00 since the beginning of the month.

According to the technical oscillators, the RSI indicator is falling from the overbought region, while the stochastic oscillator is ready for a bearish crossover within its %K and %D lines near the 80 level, both indicating a bearish retracement.

If the market retreats further, immediate support could come from the medium-term ascending trend line around the 77.50 support level. Steeper decreases could open the way for a retest of the 76.58-75.80 region, but more downside pressures could open the door for a negative correction until 71.50.

On the flip side, a successful climb above the 80.00 handle and the 50-day SMA at 81.27 could drive the commodity towards the 84.45 resistance. Even higher, the almost six-month high of 87.00 is waiting to halt the upside movements.

Summarizing, WTI oil is looking neutral in the short-term view, but the broader outlook is still bullish as it is standing above the uptrend line.

Related Assets


Latest News

Technical Analysis – USDCAD trades sideways as 200-SMA provides support

U

Technical Analysis – GBPJPY hits 20-day SMA after multi-year high

G

O

Technical Analysis – BTCUSD is held down by 200-day SMA


Midweek Technical Look – EURUSD, AUDUSD, GBPJPY

E
A
G

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.