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InvestingScope
Feb 7, 2020 6:10 PM

WTI Crude Oil: The 4H MA50 is the key for the uptrend. Long

WTI CRUDE OILTVC

Description

Oil has been consolidating this week on the 4H chart (RSI = 41.638, MACD = -0.340, ADX = 27.678, Highs/Lows = -0.0086) following the massive drop since the "Iran tension" High.

We are seeing the RSI on a bullish divergence at the moment but the uptrend has so far stopped on the MA50 (blue trend line). Since the price is trading around the 1W Support levels, we looked for pointers on the previous bottoms on that level (October and June 2019).

In October 2019 the RSI on the 4H chart was again on a bullish divergence, forming a Double Top and being rejected on the MA50 twice before it eventually broke higher. That break out essentially started the new uptrend. Same with June 2019 (RSI bullish div, Double Top, double rejection on the MA50 before break-out).

This appears to be a strong bullish pattern in formation and it is natural to expect that once the MA50 on the 4H chart breaks, a new strong uptrend will most likely start. A symmetrical target of $58.00 initially is a fair estimate.





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Comments and likes are greatly appreciated.
Comments
Zoen_Trieste
Nice analysis, as always! Keep up the good work.
InvestingScope
@Zoen_Trieste, Thank you Zoen. All the best to you too. We have updated our view on the short term:

Zoen_Trieste
@InvestingScope, I am long from slightly lower. Here is the idea
Thank you for sharing your views - they are exceptional.
Martin_Rizzo
good, thanks
InvestingScope
@Martin_Rizzo, You are welcome Martin.
WIZAPE
@InvestingScope, Master, what do you think of USO? thanks
WIZAPE
good one congratulation master :-)
BobbyBanksX
@wzallio, what are you congratulating him for?
WIZAPE
@TuParkShakur, hello your call is coming in a few days. I congratulate for your good work and for sharing any problem.
BobbyBanksX
@wzallio, OIL right now is 49.96. When's it coming?
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