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Home » Daily Technical Reports » Crude Oil Technical Report 18/03/2016

Crude Oil Technical Report 18/03/2016

WTI traded higher on Thursday, breaking above the psychological territory of 40.00 (S1). The price structure on the 4-hour chart still suggests a short-term uptrend and as a result, I would expect buyers to regain momentum at some point and aim for the 41.80 (R1) area, marked by the peak of the 4th of December. Looking at our short-term oscillators though, I see signs that a retreat below 40.00 (S1) could be on the cards before the next positive leg. The RSI has topped within its above-70 zone, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. As for the bigger picture, the break above 34.40, the upper bound of the sideways range WTI had been trading from the 12th of February until the 2nd of March, has turned the medium-term outlook cautiously positive in my opinion. Therefore, I would treat the short-term downtrend as a corrective phase for now.

OIL 18

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