InvestingScope
Long

WTI Crude Oil: Short term outlook. Bullish divergence on 4H RSI.

FX:USOIL   CFDs on Crude Oil (WTI)
Oil appears to have found Support following the very aggressive sell-off that started on January 7th after the Iran tensions began to ease. It has so far successfully tested the 49.30 level as a Support twice and is trading sideways within that level and the 52.20 Resistance on the 4H chart ( RSI = 57.881, MACD = 0.140, ADX = 33.370, Highs/Lows = 0.4321).

Despite being ranged, the RSI is on a bullish divergence on the 4H chart, printing Higher Highs and Higher Lows ever since the January bearish (Lower High) trend line (dashed line on the chart) broke. Since the price also crossed above the 4H MA50 which has been acting as a Resistance since January 8th (and is now holding as Support), there are higher probabilities to make the 52.20 break out. If that happens then the move will attract more buyers and we will most likely see an immediate test of the 4H MA200 (now around 56.00). Notice that this is roughly where the 0.382 Fibonacci retracement level is.

This is in line with out longer term perspective as shown below:





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Comments

TP @ H1 100fib now short for H4 wave Z
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Hi I.S. I agree and appreciate your technical outlook, but what do you think of Goldman’s target revision to 53? Do they have some sort agenda?
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great
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