Quotes of WTI crude oil remain within an upward trend amid rising demand and ambiguous data from the US.
The price of "black gold" was rising significantly in recent years, but now it becomes apparent that energy supplies have reached the point of equilibrium: for several months the price is moving within a wide lateral channel and this dynamics is likely to continue. After a serious correction at the end of the summer, the price rushed up to 72.65, the first key resistance level. Now, the instrument has consolidated below this level and is traded there for several days. Yesterday's Fed decision to raise interest rates and its comments on further tightening of monetary policy had virtually no effect on quotes.
Today, one should focus on data on the growth rate of the US economy and orders for durable goods.
Support and resistance
Further, the price is expected to decrease within the narrowing lateral channel to 66.55, 65.75. In the long term, a consolidation will be replaced by an upward wave to new highs. In this situation, long positions may be opened from the key support levels and the lower border of the channel.
Technical indicators confirm the outlook: MACD shows growth in the volume of long positions and Bollinger Bands are directed upwards.
Support levels: 71.50, 70.70, 70.00, 69.75, 68.75, 68.00, 66.50, 63.35.
Resistance levels: 72.60, 74.00, 75.00, 76.30, 77.00, 78.50, 80.00.
In this situation, the opening of deferred long positions will be relevant from the levels of 68.00, 66.55, 65.75 with targets at 72.65, 74.00 and stop loss at 64.00.
WTI Crude Oil
|Entry Point||68.00, 66.55, 65.75|
|Take Profit||72.65, 74.00|
|Support levels||63.35, 66.50, 68.00, 68.75, 69.75, 70.00, 70.70, 71.50, 72.60, 74.00, 75.00, 76.30, 77.00, 78.50, 80.00|
The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.