The 3 horizontal lines visible in the main weekly chart of WTI are concrete support and resistance levels taken from monthly TF. Currently the price is at 60.00 and there is a descending trendline preventing the price from climbing further. From a technical perspective, once this trendline breaks, the price on the monthly charts must close above 63.00 concrete resistance. This is just to add gain further confluence and confidence in our potential trade. Once the monthly candle closes above 63.00 we could wait for the price to retrace slightly before executing a LONG trade to target 70.00!
On a fundamental perspective there are 2 factors in our favor. First one is the IRAN tensions with the US and now potentially U.K. US putting sanctions on iranian OIL is bullish for the WTI and the tensions is just further strengthening this aspect. Secondly, the storm in the gulf is limiting the drilling activities which is also bullish for the OIL. Lastly the the deal that is binding OPEC & NON-OPEC countries seem to be going okay so far as they all want the price of OIL to rise. One thing that is bearish for the WTI at the moment seems the ongoing tradewar which if no deal could be made, the demand for OIL would decrease!
So it remains to be seen in the coming weeks how the situation develops. Shall there be a trade entry i will post in a new post.