15 May 2019
WTI Technical Analysis: Bears unable to break the ice, but plenty of resistance ahead of 63 handle
- Oil has been stuck trading in a lateral position on the charts with compressed volatility in the last few days, but the price leans with a bullish bias considering stochastics and the inability of bears to break the ice and cluster of support.
- The price has also been holding above the golden cross (marked by the eclipse) but it needs to get over the 20-D SMA just above recent highs, guarding the 63 handle targets.
- However, there are fewer tensions surrounding Iran with both sides not wanting to engage in war.
- However, in an escalation, a break of the 63 handle opens 9th April highs at 64.77.
- Should bears take back full control, the 200 DMA and 50% Fibo level accumulating in confluence at 60.60/59.60 respectively will come into play.
- A break of the 50% level opens prospects for the 25th March lows at 58.20 ahead of the late Feb/early March highs guarding a break to the early Feb highs at 55.80.
