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
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

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
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