The bull run of WTI crude prices has been spiking through pattern, shooting stars have occurred at $60.09 and $60.33 levels to counter these rallies. But bulls have shrugged off these patterns today despite both leading oscillators approached overbought territory.
Please observe price oscillation as and when the price touches resistance and support.
For today, the prices are almost unchanged from the highs of yesterday (i.e. $60.71), despite ongoing buying sentiments.
On a broader perspective, bulls in the consolidation phase have managed to break symmetric triangle resistance decisively and sustain above, consequently, the current prices spike above EMAs & retraced 38.2% Fibonacci retracements.
But on the contrary, let’s have a glance through the major trend that was now has gone into consolidation phase that was jerky way back in mid-2015. From massive slumps from the peaks of $114 levels shouldn’t be disregarded and jumping to conclude this as a robust uptrend would be unwise, it is just 38.2% retracements.
Having mentioned that, we aren’t a pessimist, for now, more rallies on cards upto another major resistance at $62.50 upon crossover.
Major supports are observed at $60.01, $59.31 and $57.18 levels.
While the stiff resistance is seen at $62.54 levels in the major trend. Failure swings are observed at the same juncture in the recent past.
Aggressive bulls are now lingering on these levels of $60.10-$60.71.
While both leading oscillators have been converging upwards but indecisive currently.
The sustenance above DMAs with crossover will more likely to break out these levels and head for next resistance.
It is wise to use dips to deploy long hedges using forward contracts, we advocate adding longs in near-month with a view to arresting upside risks.