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WTI and Brent Crude Oil charts: bears force pullbacks to support levels

WTI Crude Oil chart


The daily bar chart pattern of WTI Crude Oil consolidated near the 50.50 level before bouncing up with good volume support to move past 52 on Sep 25.

On Sep 28, oil's price touched an intra-day high of 52.86 - its highest level in 5 months - but formed a 'reversal day' bar (higher high, lower close) with a surge in volumes. That triggered a pullback towards the 'support/resistance' level of 50.50.

Oil's price had an intra-day fall below 50.50 and its rising 20 day EMA on Oct 2, but recovered to at 50.58. The 'golden cross' of the 50 day EMA above the 200 day EMA has technically confirmed a return to a bull market.



After touching a low of 42 in Jun '17, oil's price has formed a bullish pattern of 'higher tops, higher bottoms'. Bulls are likely to use any further dip to buy.

On longer term weekly chart (not shown), oil's price closed above its 20 week and 50 week EMAs but well below its falling 200 week EMA in a long-term bear market. Weekly MACD is in neutral zone. RSI is looking bullish. Slow stochastic is looking overbought.

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil faced some resistance from the 56 level before rising with good volume support to touch an intra-day high of 59 on Sep 26. 

However, formation of a 'reversal day' bar (higher high, lower close) triggered a sharp pullback towards the 'support/resistance' level of 56. Oil's price dropped below its rising 20 day EMA intra-day on Oct 2, but recovered to close just above 56.

Daily technical indicators have corrected overbought conditions, and are showing downward momentum in bullish zones. If oil's price corrects some more, expect the zone between 52 & 53 to provide support.

Oil's price is trading above its three EMAs in a bull market. A bullish pattern of 'higher tops, higher bottoms' has formed from the low of 44 touched in Jun '17. Any further dip will provide an opportunity to buy.

On longer term weekly chart (not shown), oil's price closed above its 20 week and 50 week EMAs but below its sliding 200 week EMA in a long-term bear market. Weekly technical indicators are in bullish zones, but not showing any upward momentum.


This post first appeared on Stock Market Charts | India Mutual Funds Investmen, please read the originial post: here

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WTI and Brent Crude Oil charts: bears force pullbacks to support levels

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