Commodities

Technical Analysis – WTI futures fails to build clear tendency

Posted on November 5, 2020 at 8:07 am GMT

Melina Deltas, XM Investment Research Desk

WTI futures have been in a neutral mode over the last five months, trading with weak momentum near the simple moving averages (SMAs). On Monday, the price rebounded off the 33.44 support level, reaching the Ichimoku cloud. The MACD oscillator is flattening marginally below the zero level, while the RSI is sloping marginally down after it achieved the neutral threshold of 50.

If the price successfully surpasses the SMAs, immediate resistance could come from the 41.93-43.71 zone before breaking the trading range to the upside, visiting the 50.60 barrier. Breaking these levels, the next crucial area is 54.80.

Alternatively, a fall below the 200-day SMA could send the market until 33.44. A downside penetration of the five-month consolidation area could take the commodity towards 28.24 and sharply lower to 9.89, registered on April 26.

Concluding, WTI crude oil futures are failing to create a clear direction tendency, raising chances for a bearish trend in the short-term timeframe.

WTI crude

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