Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

WTI Hits Resistance Near 57.00 and Pulls Back

WTI traded higher yesterday, after hitting support near 55.60. That said, the advance was stopped by the 57.00 zone and today, the black liquid pulled back. Overall, WTI is still trading within the range that’s been containing most of the price action since August 9th, between 53.85 and 57.30. At the same time, it also trades below the tentative downside resistance line drawn from the high of April 23rd. Thus, we would stay flat for now, although the price is trading closer to the upper end of the aforementioned short-term range.

If the bears are willing to push the price lower, then we may see them targeting yesterday’s low again, near 55.60. That said, we would like to see a clear break below 55.35, a support marked by the inside swing high of August 26th, before we get confident on larger declines within the pre-discussed range. Such a dip may pave the way towards the lower end of the range, at around 53.85. If the bears are not willing to stop there either, then we could see them aiming for the 53.10 zone, near the low of August 25th.

Taking a look at our short-term oscillators, we see that the RSI topped from slightly below its 70 line, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. Both indicators suggest weakening upside momentum and support somewhat the notion for some further retreat within the range.

On the upside, we would like to see a strong break above 58.03 before we start examining whether the bulls have gained full control. Such a break would not only drive the liquid above the upper bound of the short-term range, but also above the downside resistance line drawn from the high of April 23rd. We could then experience extensions towards the 58.90 area, slightly above the high of July 31st, the break of which may set the stage for the psychological round figure of 60.00.

WTI crude oil 4-hour chart technical analysis

 Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

75% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS