Technical Update - WTI and Brent Crude oil rebounding but struggling for momentum Technical Update - WTI and Brent Crude oil rebounding but struggling for momentum Technical Update - WTI and Brent Crude oil rebounding but struggling for momentum

Technical Update - WTI and Brent Crude oil rebounding but struggling for momentum

Commodities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Crude oil is rebounding off lows trying to break bullish out of consolidation area. But the rebound seems to be faltering. Will Crude oil slide back in Consolidation area or get a second wind?


WTI Crude oil was yesterday close to be testing the upper falling trend line but failed and also failed closing above resistance at around 72.65.
If WTI can close above both there is short-term potential to 0.786 retracement at 77.06 and possibly also to the strong resistance at around 79.77.

However, the declining 200 DMA will provide some resistance.

RSI is also still in negative sentiment but if RSI can close above its upper horizontal trendline it would be an indication of WTI to move higher

If WTI is failing to close above 72.65 it could experience some time being range bound between 72.65 and 67

Note: January 2024 future contract is expiring today 19th December. New contract February 2024
wti d 1912
Source all charts and data: Saxo Group
WTI February 2024 contract levels are slighly different than on the continuous contract CLc1 which is still displaying the January contract until contract roll later today

wtifeb d 1912

Brent Crude oil yesterday closed above resistance at around 77.24 almost rebounding to the 0.618 retracement at 79.99. Trend is still down however, and RSI is still in negative sentiment

However, the rebound/correction can still reach the upper falling trendline and the 0.786 retracement at 82.08 where the 200 DMA will provide resistance.
A daily close above the upper falling trend could give further upside energy to 84-85.

A close back below 77.24 the downtrend is resuming. Support at around 72
brent d 1912

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. 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, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.