WTI crude shorting set-up – Forms double top

FX:USOIL   CFDs on Crude Oil (WTI)
321 2 8
WTI crude shorting set-up – Forms double top , on verge of breaking neckline:

Technical Glance:

On the  daily chart , this energy commodity forms a  double top pattern (see rectangular area), and attempts to head towards neckline, the current prices well below DMAs, heading for next support at 46.50.

If it manages to break 47.97 (i.e. neckline of a  double top ) then bears would be exposed to more momentum in the days to come.

The recent rallies have been testing resistance at 7DMAs (around 48.30 levels) (see 1 hourly chart).

While plotting weekly graph, "Shooting star" appeared at peaks of 48.93 levels that signals some weakness as the leading oscillators diverge to the previous rallies at that juncture.

Daily RSI and stochastic oscillators converge to the prevailing slumps and evidencing consistent lower lows.

Current prices on monthly plotting slid well below EMAs as well, leading and lagging indicators converge prevailing slumps.

While, %D crossover sustains even at around 60 levels on slow stochastic (currently %D line at 67.3722 & %K line at 51.7462), so overall we see selling pressures in this commodity at the current stage of crude trading at 48.18 levels.

Trade tips:

At current juncture contemplating above bearish indications, on speculative grounds we recommend staying short in near month futures for target towards $46.50 level with strict SL of 49.20 levels.

Writers in a futures contract are expected to post performance bond margins in order to open and maintain a short futures position.

These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the futures contract.
Trade closed: target reached: Book profits.
Targets achieved
FxWar FxWar
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