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WTI Crude Oil (USDWTI) might see some resistance here at 44-44.50

WTI Crude has been rallying and and I discussed the bullish outlook yesterday (8/12): WTI Crude Oil is building some bullish momentum

WTI Crude 4H Chart 8/12

(click to enlarge)

New high with strength:
- As we can see in the 4H chart, price did indeed push into a new high on the month.
- The latest upswing was sharp. 
- This indicates a strong market, and unless we see some evidence of strong resistance, we should respect the bullish momentum. 

Reasons to fade:

- Despite the noted sharp rally, we are starting to see resistance around the 44.00 handle. 
- Note a bearish divergence with the RSI, which means the bullish momentum is stalling. 
- Also note that around 44.50 is a previous support pivot that can also been treated as resistance. 
- 44.50 is also reinforced by the 200-period simple moving average (SMA) for the 4H chart. 

Anticipating resistance:
I think the bullish momentum is slowing, and will give the market more confidence to fade here in the 44-44.50 area. I expect to see some resistance here at least in the short-term (during the next couple of sessions). 

Next resistance:
If I am wrong and price pops up above 44.50, the 45.85-46 area will be the next critical resistance. I am anticipating a pullback at least towards 42.00. Then, I want to see what happens, and assess whether USDWTI is ready to continue the prevailing downtrend, or if it has indeed entered a period of consolidation, in which we will see oil oscillate between a range such as 40 and 45.

Time for consolidation?
The thing is, looking back at oil price action, we know it doesn't like to sit in a range for long in the short-term, but that doesn't mean it won't happen - after all, the fact that we haven't seen a sideways consolidation could mean that one is due.