Technical Analyst, Saxo Bank Group
Summary: Brent and WTI Crude oil ran out of steam at or below 200 Moving Average and are both in correction mode. Indicators suggesting Crude oil likely to resume uptrend shortly
Brent Crude oil ran out of steam just short of the 200 daily Moving Average. Now trading around previous resistance, now support, at around 78.66.
RSI is still showing positive sentiment indicating higher oil prices after what is likely to be a correction.
If Brent trades back above the Cloud uptrend is likely to resume with a test of 83 resistance to follow.
However, the correction can take Brent oil down to the 0.618 retracement at 75.44 without jeopardizing the short-term uptrend. The 55 daily Moving Average will offer support.
A close below 75.00 will demolish the bullish picture.
If Brent breaks above last week’s peak around 81.70 it will have broken above its medium-term falling trendline (Weekly chart)
A close above 83 is likely to lead to a move to around 87-89.
WTI was rejected the 200 daily Moving Average. Currently below previous resistance, now support, at around 74.75. However, WTI is still above the Cloud and above the 100 Moving Average.
RSI is still showing positive sentiment indicating higher oil prices after what is likely to be a correction. A close above 74.75 could be the signal that the correction is over and WTI is set to move higher to resistance at around 78.68-79.18.
Break above could fuel a rally to around 83.35
Similar to Brent WTI can correct to the 0.618 retracement at 70.98 without jeopardizing the uptrend. A close below 70 will demolish it.
A break above last week’s peak at 77.33 will result in a break above medium-term falling trendline. (Weekly chart)
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