Bottom line: WTI Crude long term structure continues to remain bullish against $0.01 historic lows in April 2020. Over the short to medium term though, the commodity has managed to carve a meaningful top around $43.75 levels recently. Bears remain poised to hold prices below that.
Fundamental Outlook:
WTI Crude managed to push higher by over +6.32%, closing at $39.35 yesterday. Hopes on another round of US fiscal stimulus package might have aided Oil’s rally as most risk assets. The commodity would be taking cues from OPEC’s World Oil Outlook this Thursday. Oil prices might remain under pressure if $43.75 is not breached in the near term.
Technical Analysis:
WTI Crude managed to produce an impressive rally yesterday, reaching around $39.70 levels. It seems to be a counter trend rally and bears might be back in control from here. Immediate resistance is seen towards $43.75 mark and prices might hold below that in the near term.
WTI Crude had dropped through $0.01 historic lows in April this year. Since then it has produced a religious uptrend and managed to push through $43.75 levels on August 26, 2020. The subsequent drop through $39.30 mark, might be the beginning of a meaningful corrective drop.
With resistance intact around $43.75 mark, WTI Crude might be preparing to drop towards $26.00 and $16.00/17.00 levels respectively. Also note that $16.60 is fibonacci 0.618 retracement of the entire rally between $0.01 and $43.75 respectively. High probability remains for a bullish bounce if prices manage to reach there.
Most traders might take the recent rally as an opportunity to initiate fresh short positions ($39.00/40.00), with a protective stop above $43.75 and projected targets below $26.00 and $16.00 levels respectively.
Prepared by
Harsh Japee, Technical Analyst.
WTI Crude Chart
This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
