Technical analytics

WTI market technical outlook

WTI

Daily chart:

Oil slumped, having broken a support at 36.40-36.75 as well as the lower Bollinger band. Thus we can expect further drop of the market in direction of $34 for a barrel.

 

H4-chart:

Local support 35.05-35.27 (lower Bollinger band) is under pressure of sellers and probably will be broken. Thus we consider short trades only.

H1-chart:

We also note local support zone 35.27-35.48, which can move the execution of a negative scenario for oil to the next week. Here we observe a weak trending potential of ADX, therefore a probable break of this support is in question today. In case a flat scenario pans out, the quotes might roll back to the middle band (36.13).

Conclusions:

Main scenario: Extension of decline to 35.00 with aim at 34.00.

Alternative scenario: Flat in the 35.27-36.13 range.

Trading recommendations:

Shorts from 36.13 to 35.00 and 34.00.

 

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