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WTI Crude Oil Hanging on to a Double Bottom

WTI Crude Oil formed a double bottom ahead of the FOMC risk. Price rallied from 90.45 up to about 95.00 before holding, and then retreating after traders bought the USD in reaction to the FOMC event.

Still, WTI Crude held above the double bottom resistance at 93.65, essentially respecting a new price bottom and thus signaling a bullish correction against the downtrend that has lasted 3 months, since June.

(WTI Crude 4H Chart 9/18)

Also, note that price is about to break above the 200-period SMA in the 4H chart, and the 4H RSI is about to tag 70 to show bullish momentum. 

When we look at the daily chart, we see where the sellers might be during this bullish correction. First, the 97.00 level is a support/resistance pivot, and high from a consolidation during the second half of August. It will also be where the 38.2% retracement and the 50-day SMA reside. So expect sellers around 97.00.

However, if price continues to hold above 93.00, we might still have further upside risk toward the falling trendline from June. The 100 handle will probably be more important. It is a psychological pivot, is where the 100-day and 200-day SMAs reside, and is also between the 50% and 61.8% retracement. We should expect consolidation around 100 if price does correct back to these levels.

(WTI Crude Daily chart 9/18)