Crude Oil: WTI Extended, but Has Generally Bullish Technical Outlook
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Crude Oil Technical Outlook:
- WTI crude oil continues to rally within channel formation
- May be in for a pullback/consolidation, using channel as guide
WTI crude oil remains in bullish channel
WTI crude oil is on the extended side, but remains within the confines of a well-defined channel structure that keeps it pointed higher. With that in mind, we may see a pullback develop here soon that will alleviate any short-term overbought conditions that exist, but the outlook is generally bullish.
A pullback to the lower trend-line could offer would-be longs an opportunity to enter and have a threshold from which to assess risk. Stay above the lower parallel and the current trend remains intact. Break below and a larger decline may ensue.
On the top-side, should we see more gains watch the top-side trend-line as a potential line of resistance. Price resistance doesn’t arrive until a good ways higher at around 64, with 65.62 the very peak of the Jan 8 2020 spike-high.
WTI Crude Oil Daily Chart (maintaining channel structure)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.