Please be noted that the WTI crude price rejects at 51.12 levels despite 7DMA crossing over 21DMA.
During European trading sessions, bears resume to evidence day lows of 50.86 levels.
For now, the commodity has been well above DMAs especially after the formation of the candle with the big real body on daily terms.
We think further spikes most likely, expect new environment upon break-out above 51.15 levels.
WTI crude oil prices showing more strength after the talks of OPEC’s oil production freezing.
Although the buying momentum has been reduced for the day as leading oscillators are not indicative of the current , it would be very risky bets to expect dips below 50.60 levels.
The intermediate trend of this commodity shows short-term target near the recent highs of 51.60 levels as long as 50.60 holds firmly.
Daily signals convergence to the upswings, while Stochs approach overbought zone but still buying momentum is intensified on EOD terms. Same has been the case on monthly terms.
indicates the upswings are most likely to extend further.
On a broader perspective, the breaks above 46.45 (i.e. 23.6% fibos) on monthly terms and heading towards 51.64 (i.e. 5-months highs), the sustenance above 23.6% and 21EMAs could be deemed as consolidation phase to transform into reversal pattern.
Moreover, fundamentally, the Russian negotiation in OPEC politics is most likely to stimulate WTI price rallies ahead of EIA’s inventory check during US session today.
Hence, medium to long term crude oil traders who wish to invest in this commodity are advised to seek cautiously a better entry point (wait for dips) and add longs in crude of November month delivery for targets of 53.86 levels but also add a stop loss of 50.35 levels.