WTI (US OIL) At 61.8 Previous Monthly Swing High!
At One time OIL was crashing and burning like a Meteoroid and This past number of months it has been recovering quite well it would suggest. However in the path of OIL recovery there lies a strong resistance of 74, which not only happens to be a crucial support but also a 61.8 golden ratio retracement of the pervious Monthly swing high. Refer to the image below (Monthly charts). A Short opportunity looks great and the probability is also in our favor however i feel the correction will be a minor one and the price might test the crucial 55 level before resuming the uptrend
On the Weekly chart a channel has been developing for quite some time. If the prices are likely to reverse then the price must break the channel and the EMA50 for this to happen. A potential short opportunity can be taken when the price retests the EMA 50.
To confirm this potential break to the downside the daily chart also displays a dynamic trendline that had been acting as resistance and now acting as support since the price broke up. A potential break and retest of the trend line would add to the many confluence factors that the OIL is about to slightly reverse before resuming its Uptrend in the near future
So in short, i am waiting for the channel violation on the weekly charts and i will base any possible entry from the daily chart. Oil is a commodity and from my experience technical analysis itself is not enough to study commodities as they are strongly driven by supply and demand i.e fundamental news. So overall before going short on this pair its advised to read the current and future fundamentals affecting the OIL market
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On the Weekly chart a channel has been developing for quite some time. If the prices are likely to reverse then the price must break the channel and the EMA50 for this to happen. A potential short opportunity can be taken when the price retests the EMA 50.
To confirm this potential break to the downside the daily chart also displays a dynamic trendline that had been acting as resistance and now acting as support since the price broke up. A potential break and retest of the trend line would add to the many confluence factors that the OIL is about to slightly reverse before resuming its Uptrend in the near future
So in short, i am waiting for the channel violation on the weekly charts and i will base any possible entry from the daily chart. Oil is a commodity and from my experience technical analysis itself is not enough to study commodities as they are strongly driven by supply and demand i.e fundamental news. So overall before going short on this pair its advised to read the current and future fundamentals affecting the OIL market
Please GIVE ME A LIKE IF YOU LIKE THE ANALYSIS AND FOLLOW ME IF YOU LIKE TO RECEIVE MORE ANALYSIS. thank you
Currently i am not looking to enter this trade and will wait for the future if a opportunity to go LONG arises