News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Oil Traders Prepare for a Breakout on WTI Consolidation

Oil Traders Prepare for a Breakout on WTI Consolidation

Walker England, Forex Trading Instructor

Market Condition: Pending Breakout

Target 1: November High $48.33

Target 2: October High $50.90

Invalidation: Bearish Breakout Under $39.87

WTI Crude (US Oil) 1Day Chart

Oil Traders Prepare for a Breakout on WTI Consolidation

(Created using TradingView Charts)

WTI Crude Oil (US OIL) has started Monday’s testing resistance of a trading range that has been developing for the last seven trading days. Currently resistance is marked by Fridays high at a price of $42.73bbl. If prices trade above this value it opens the possibility that prices are completing an A-B-C correction from the October high at $50.90. In this bullish scenario traders looking for a breakout may first target the November high at $48.33, followed by the previously mentioned October high.

If prices fail to breach resistance it would suggest that WTI is set for further consolidation, or a bearish breakout under support. Support is currently referenced from the November 19th low at a price of $39.87. A decline under this value would signal a potential continuation of Crude Oils current downtrend, which has already declined as much as $24.83 a barrel from the May 2015 high at $62.56. In this scenario the previously mentioned A-B-C correction would be invalidated, and traders may begin to target 2015 lows at $37.73

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES