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WTI and Brent Crude Oil charts: heading higher after breaching resistance zones

WTI Crude Oil chart


After faltering slightly on its third attempt, the daily bar chart pattern of WTI Crude Oil finally managed to breach the 'resistance zone' between 66 & 67 with good volume support on Wed. Apr 18.

Oil's price touched a 3 yr high of 69.56 on Thu. Apr 19, but formed a 'reversal day' bar (higher high, lower close) that triggered a pullback to the top of the 'resistance zone' on Mon. Apr 23.

Oil's price formed another 'reversal day' bar (lower low, higher close), which is pointing to further upside, and closed well above its three rising EMAs in a bull market.

Daily technical indicators are looking bullish and a bit overbought. MACD is rising above its signal line inside its overbought zone. RSI is moving sideways just below its overbought zone. Slow stochastic is moving sideways inside its overbought zone.

Some consolidation can be expected around current prices before oil's price can move higher.

On longer term weekly chart (not shown), oil's price closed above its three rising weekly EMAs. The impending 'golden cross' of the 50 week EMA above the 200 week EMA will technically confirm a return to a long-term bull market.  Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price.

Brent Crude Oil chart


The daily bar chart pattern of Brent Crude Oil broke out above the 'resistance zone' between 70 & 71.30 with strong volume support on Wed. Apr 11.

After a pullback that dropped inside the 'resistance zone' intra-day on Apr 16 & 17, oil's price soared away to touch a new 3 yr high of 75.10 on Mon. Apr 23 - and may be heading even higher.

Oil's price is trading well above its three rising EMAs in a bull market, but is looking overbought. All three daily technical indicators are inside their respective overbought zones. Some correction or consolidation is likely.

"Between Jan and Apr 2018, U.S. crude oil and condensate exports to Europe jumped fourfold compared to the same period of 2017... A wider WTI/Brent spread has been supportive of increased and cheaper U.S. oil supply into Europe compared to Russian, Nigerian, and other crude grades."

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price.


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: heading higher after breaching resistance zones

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