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Crude Oil Prices Rebound at Support

Crude Oil Prices Rebound at Support

Walker England, Forex Trading Instructor


Talking Points

WTI Crude Oil Prices have bounced off of key support this morning near $46.00. With prices failing to breakout lower, it suggests that Crude Oil prices may be rebounding inside of a consolidating triangle. As trading continues however, traders should continue to monitor this value. A move below support would suggest a resumption of the 2016 bear trend. Alternatively, if prices rebound further, it opens Crude Oil prices to test daily resistance under $4900

WTI Crude Oil Prices, Daily Chart

(Created by Walker England)

Displayed in the 5-minute chart below, Crude Oil prices can be seen trending higher off of the daily lows at $45.90. The GSI indicator has noted this short-term upswing, by highlighting a series of higher highs and higher lows printed in the last hour of trading. After reviewing 4,057,983 pricing points, GSI has indicated that price action has advanced a minimum of 15 cents in 71% of the 110 matching historical events. Traders looking for a return to the early bearish market conditions should watch for a move to the last historical bearish distribution found at $45.91. Prices only declined by 75 cents in 5% of matching events, but a move to this value would set Crude Oil up to trade towards a new daily low.

Want to learn more about GSI? Get started learning about the Index HERE.

Crude Oil 5 Minute GSI Chart

(Created by Walker England)

Sentiment for WTI Crude Oil (Ticker: USOIL) remains positive with SSI (speculative sentiment index) standing at +1.56. With 61% of positioning long, this may suggest that Crude Oil Prices may continue to trade lower. In the event of a further price decline, traders should look for SSI to extend to a positive extreme of +2.0 or greater. Alternatively, in the event that prices continue to trade higher, traders should watch for SSI to level out from extremes and move towards a more neutral value.

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See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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