Wednesday, May 16, 2018

Will WTI oil break to the upside?

WTI oil has found a very good resistance zone around the 72.00 level as shown on the daily chart. The price has already tested that level a few times since last week and due to the fact that the daily candle lows are higher than the previous ones, which is an indication that the pressure is accumulating to the upside. Therefore, we could see a bullish breakout of the 72.00 level. Above the 72.00 level we do not have any more important resistances until the 77.13 level where we can find the 200 month EMA. Between the 72.00 level and the 77.13 level, any of the round number levels could act as resistance. Another possible scenario is a breakout-pullback pattern around the 72.00 level. On the other hand, if the price of WTI oil breaks below the 70.00 level, then is next support zone could be the 67.62 level along with the 55 day EMA, purple line.


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WTI oil at the 200 day EMA

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