Technical analysis update: WTI oil (3rd January 2022)
WTI oil rose over 20% since its low at 61.46 USD on 2nd December 2021. We previously noted that weakness in the general stock market posed a threat for further rise of the price of USOIL in the short-term. However, since then the general stock market seems to stabilize. Because of that we regained our bullish view; additionally, we would like to set a short-term price target for USOIL to 77 USD.
Technical analysis - daily time frame
RSI continues to develop bullish structure. Stochastic is also bullish and MACD performed a bullish crossover above 0 points which further bolsters the bullish case for USOIL. DM+ and DM- show mixed conditions; and ADX declined substantially which suggests that the prevailing trend lost strength.
Technical analysis - weekly time frame
RSI points to the upside which is bullish. Stochastic is bullish too and MACD started to flatten (still in the bullish zone). We will observe MACD in the following weeks and we will watch out whether it manages to stay within the bullish zone and reverse back to the upside. DM+ and DM- show bearish conditions while ADX continues to decline. Though, ADX's value is a little bit higher than the value of ADX on a daily time frame.
Illustration 1.01
Picture above shows the weekly chart of USOIL. It also shows setup for head and shoulders being formed. We will observe whether this pattern will continue to develop further. However, at the moment, we believe this pattern will get distorted and price will continue higher.
Support and resistance
Following support and resistance levels are derived from the peaks and troughs in price of USOIL. Short-term support sits at 73.30 USD and short-term resistance lies at 77.41 USD. Next closest resistance appears at 79.20 USD and then at 81.78 USD. Major resistance lies at 85.39 USD. Major support level can be found at 61.76 USD.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Technical analysis - daily time frame
RSI continues to develop bullish structure. Stochastic is also bullish and MACD performed a bullish crossover above 0 points which further bolsters the bullish case for USOIL. DM+ and DM- show mixed conditions; and ADX declined substantially which suggests that the prevailing trend lost strength.
Technical analysis - weekly time frame
RSI points to the upside which is bullish. Stochastic is bullish too and MACD started to flatten (still in the bullish zone). We will observe MACD in the following weeks and we will watch out whether it manages to stay within the bullish zone and reverse back to the upside. DM+ and DM- show bearish conditions while ADX continues to decline. Though, ADX's value is a little bit higher than the value of ADX on a daily time frame.
Illustration 1.01
Support and resistance
Following support and resistance levels are derived from the peaks and troughs in price of USOIL. Short-term support sits at 73.30 USD and short-term resistance lies at 77.41 USD. Next closest resistance appears at 79.20 USD and then at 81.78 USD. Major resistance lies at 85.39 USD. Major support level can be found at 61.76 USD.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Trade closed: target reached:
Our short-term price target of 77 USD was reached today.
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