Technical Update - Crude oil bounce likely to fizzle after rejection. Resuming downtrend? Technical Update - Crude oil bounce likely to fizzle after rejection. Resuming downtrend? Technical Update - Crude oil bounce likely to fizzle after rejection. Resuming downtrend?

Technical Update - Crude oil bounce likely to fizzle after rejection. Resuming downtrend?

Commodities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

WTI crude oil is being rejected at the upper falling trendline and the 0.786 Fibonacci retracement at 78.88. RSI is still showing negative sentiment, indicating WTI is likely to slide back.

If WTI is forming a bearish day today, a top and reversal pattern is also in place.

Support at 76.60 and strong support at around 75.21. A break below 75, WTI is likely to test strong support at around 72.41.

If WTI breaks above 79.31, the key resistance at around 80.62 is likely to be tested. However, for WTI to establish a bullish trend, a daily close above 80.62 is required. If that scenario plays out, there is upside potential to around 83.83

Source all charts and data: Saxo Group
Brent crude oil: Almost similar picture; rejected at upper falling trendline and the 0.786 retracement at 83.25.

Brent is likely to slide lower over the coming days/weeks to test support at around 79.30. A close below and Brent will most likely test support at around 76.85. Minor support at around 80.72.

A break above 83.33, the strong resistance at around 85.02 will be tested. A daily close above could pave the road towards 89–90

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