Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Technical Update for Crude Oil: Brent and WTI

Commodities / Crude Oil Mar 12, 2017 - 05:34 PM GMT

By: MarketsToday

Commodities

Highlights: Brent Crude

  • Brent has been progressing upwards in an ascending trend channel for a number of months
  • Last week it broke down sharply from a tight symmetrical triangle or pennant pattern and through support of the 50-day exponential moving average (ema) before finding support around the 50-week ema and the 200-day ema. The low for the week was 51.18.
  • Brent is now likely to either:
    • bounce from here back up towards the breakdown level around 55.00 to test it as resistance, before turning back down, or
    • relatively quickly continue the descent to lower support levels

  • Further weakness is likely to eventually see Brent hit at least the lower channel line, which looks to be around 47.60 at this point.
  • If it continues to progress within the channel then another touch of the upper line is possible eventually once the current correction is complete.
  • At this point resistance of the upper line looks like it would be around the 200-week ema (now at 65.92).

Highlights: WTI Crude

  • WTI has formed a potentially bearish ascending wedge over recent months
  • Last week it broke down sharply from a tight short-term consolidation pattern formed around resistance of the wedge, and dropped below support of the 50-day ema.
  • Support so far is at the low for the week of 48.36. That’s just below both the 50-week ema and the 200-day ema but still close enough where the area of last week’s low may hold and lead to a bounce.
  • Brent is now likely to either:
    • bounce from here back up towards the breakdown level around 52.25 to test it as resistance, before turning back down, or
    • relatively quickly continue the descent
  • Further weakness is likely to eventually see WTI hit at least the lower trend line of the ascending wedge. At this point it looks like that would occur around the 45.90 price area.
  • If WTI continues to progress within the wedge then another touch of the upper line is possible once the current correction is complete.
  • Given the current structure of the wedge it looks like there could be more time needed for the wedge to fully form before it breaks down, if it is to do so. This is supportive of another move higher eventually.
  • As with Brent, it looks like the 200-day ema will be close to the upper wedge line by the time WTI gets there.

Note: Keep in mind that price/chart patterns can and do fail, and they can also evolve into different patterns.

Bruce Powers, CMT Chief Technical Analyst http://www.marketstoday.net/

© 2017 Copyright Bruce Powers- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in