Commodities

Technical Analysis – WTI oil futures trades sideways in near term; bullish mode in long term

Posted on September 11, 2018 at 9:05 am GMT

Melina Deltas, XM Investment Research Desk

West Texas Intermediate (WTI) crude oil futures have been moving sideways since the bounce off the 68.50 resistance level, which overlaps with the 38.2% Fibonacci retracement level of the downleg from 75.24 to 64.40. In the short-term, the RSI indicator is pointing upwards in the negative zone, while the blue %K line of the stochastic oscillator posted a bullish cross with the red %D line, signaling upside tendency in the 4-hour chart.

An extension to the upside and above the 68.50 resistance area could meet the 40-simple moving average (SMA) in the near term at 68.80. Further up, resistance could be found at 69.50, which is marginally below the 50.0% Fibonacci of 69.80. More advances could drive the oil until the 61.8% Fibonacci of 71.10.

If the price weakens and slips below 66.95, it could touch again the long-term ascending trendline near 66.00. Even lower, the 65.70 support level could attract greater attention as any leg below the diagonal line could create a bearish outlook, opening the way towards the 64.40 barrier.

To summarize, WTI crude looks neutral in short-term, while in the long-term picture is seen bullish since June 2016.

commodities WTI crude

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.