WTI long hedge setup as crude bulls drag double bottom pattern
The WTI crude oil price rallies are struggling to extend their recent recoveries but holding stronger at 7DMAs, currently trading at around $74.61 levels.
Technically, WTI crude on daily plotting, bulls are extending double bottom pattern which is bullish in nature.
Double bottom formed with bottom 1 at $63.62 and bottom 2 at $64.45 levels. For now, this bullish pattern continuation is staged as strong support is seen at $72.86 levels.
Even though if any abrupt price dips are seen on overbought pressures, then, it is perceived as better entry levels to build longs.
While the consolidation phase breaks-out symmetric triangle resistance (refer monthly chart), as a result, the uptrend retraces more than 50% Fibonacci levels of the lows of February 2016 (i.e. $26.08) and the highs of May’2011 (i.e. $114.79 levels). That’s where, the trend seemed slightly edgy with occurrences of shooting star and hanging man formations. For now, bulls bounce back well beyond EMAs and 50% Fibonacci levels and now on the verge of hitting 61.8% Fibonacci levels.
Momentum and trend study: The prevailing uptrend to sustain upon bullish DMA and MACD crossovers.
But both momentum oscillators (RSI & stochastic curves) signal overbought pressures at this juncture on both timeframes.
While energy prices sneaked past ($80 in case of brent and $76.24 in case of WTI) a barrel as mining nations like Russia and Saudi Arabia decided against mounting global production at a meeting in Algiers.
Overall, on hedging grounds, it is wise to capture minor price dips and we advocate initiating longs in WTI CME futures contracts with a view to arresting further upside risks.
Currency Strength Index: FxWirePro's hourly USD spot index is inching towards -48 levels (which is bearish), while articulating (at 13:36 GMT).
Technically, WTI crude on daily plotting, bulls are extending double bottom pattern which is bullish in nature.
Double bottom formed with bottom 1 at $63.62 and bottom 2 at $64.45 levels. For now, this bullish pattern continuation is staged as strong support is seen at $72.86 levels.
Even though if any abrupt price dips are seen on overbought pressures, then, it is perceived as better entry levels to build longs.
While the consolidation phase breaks-out symmetric triangle resistance (refer monthly chart), as a result, the uptrend retraces more than 50% Fibonacci levels of the lows of February 2016 (i.e. $26.08) and the highs of May’2011 (i.e. $114.79 levels). That’s where, the trend seemed slightly edgy with occurrences of shooting star and hanging man formations. For now, bulls bounce back well beyond EMAs and 50% Fibonacci levels and now on the verge of hitting 61.8% Fibonacci levels.
Momentum and trend study: The prevailing uptrend to sustain upon bullish DMA and MACD crossovers.
But both momentum oscillators (RSI & stochastic curves) signal overbought pressures at this juncture on both timeframes.
While energy prices sneaked past ($80 in case of brent and $76.24 in case of WTI) a barrel as mining nations like Russia and Saudi Arabia decided against mounting global production at a meeting in Algiers.
Overall, on hedging grounds, it is wise to capture minor price dips and we advocate initiating longs in WTI CME futures contracts with a view to arresting further upside risks.
Currency Strength Index: FxWirePro's hourly USD spot index is inching towards -48 levels (which is bearish), while articulating (at 13:36 GMT).