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Home » Daily Technical Reports » Crude Oil Today Technical Report 09/05/2016

Crude Oil Today Technical Report 09/05/2016

Mon, May 09 2016, 05:48 GMT SzrnFX

WTI gapped higher on Monday to trade above the 45.00 (S1) level. Nevertheless, the advance was halted by the 46.00 (R1) resistance line. The price structure on the 4-hour chart still suggests a short-term uptrend and as a result, I would expect a break above 46.00 (R1) to initially aim for the 46.80 (R2) hurdle, marked by the peak of the 29th of April. Our short-term oscillators detect upside momentum and support the case that the price is possible to trade higher in the near future. The RSI crossed above its 50 line, while the MACD, already above its trigger line, has just turned positive. Moreover, both the indicators lie above their respective upside support lines. As for the bigger picture, the price structure on the daily chart remains higher peaks and higher troughs above the uptrend line taken from the low of the 11th of February. This keeps the medium-term picture positive. Nevertheless, I still see negative divergence between the daily oscillators and the price action, revealing that the longer-term uptrend may have started losing some momentum.

OIL 09

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