Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

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Thursday, October 27, 2011

Crude Oil (WTI) Technical Analysis 2011.10.27

The 15 min chart of Crude Oil (WTI) shows a down move development with lower lows and lower highs. The price has retraced 61.8% of the previous down swing and has also reached the $92.40 resistance area that represents the previous troughs.

If the sellers have more to offer in this period (from 25th of Octomber) this will be a probable reversal point .

Looking at the 4 hour chart, we can see the Crude Oil price broke the most important resistance of the previous months ($90.00 level).

The trend is still strong as the price managed to reach the upper border of the channel (T2). Furthermore, the slopes of the swings and the market dynamics are representative of a bull market.
An eventual break below the $90.00 level and the T1 trend line will give evidence of a correction in progress.   

CONCLUSION: Crude Oil price can move within the $90.00-92.40 area without any relevant information for the future price action. We have to monitor these levels in order to get the market leaders (bulls or bears). If 92.40 will be broken, we should get further confirmation of it as a support level before the previous highs ($94.60) will be set for a target. 

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