HomeContributorsTechnical AnalysisTechnical Outlook: WTI OIL – Extended Consolidation Seen While $50.00 Support Holds

Technical Outlook: WTI OIL – Extended Consolidation Seen While $50.00 Support Holds

WTI oil price moves lower on Friday after Thursday’s action ended in long-tailed Doji, signaling hesitation ahead of $51.00 barrier which was dented on Wednesday.

Today’s easing was so far mild and suggesting the price may hold in extended consolidation while initial support at $50.00 (Thursday’s low and strong downside rejection) holds.

Overall bullish structure was reinforced by formation of 10/200 SMA golden-cross, which underpins the action.

Sustained break above $50.83/$51.09 (cracked FE 100$ of the wave C from $46.99 trough/Wednesday’s fresh four-month high) would signal bullish continuation and extension of the third wave (of five-wave sequence from $45.57) towards its FE 123.6% at $51.74.

Caution on break below $50.00 (as slow stochastic is reversing from o/b zone on daily chart and generating bearish signal) which may spark deeper pullback towards next pivotal support at $49.55 (200SMA).

Res: 50.83, 51.09, 51.55, 51.74
Sup: 50.44, 50.00, 49.74, 49.55

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Featured Analysis

Learn Forex Trading