Oil (WTI, Brent Crude) Technical Analysis
- WTI finds resistance – potentially halting 4-day recovery.
- Brent crude oil attempts to trade back within its well-defined range.
- The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library
WTI Finds Resistance – Potentially Halting 4-Day Recovery
WTI prices have partially recovered from the panic selling that ensued in the wake of another flare up in the US regional banking sector. In fact, the prior four trading days were market by green candles as the oil market attempted to move away from last Thursday’s low of $63.64.
The market has appeared to find intra-day resistance in line with the February 22nd low of this year around $73.90. The MACD indicator ought to be observed in the event there is a bullish crossover, which may suggest further upside to come. The RSI is making its way higher after just falling short of oversold conditions. Points to consider when assessing the potential for further upside include: the downward sloping trendline acting as resistance and the $75.75 level – which represents the underside of the gap, inspired by OPEC’s surprise cuts which came into effect this month. The 50 day SMA adds another potential upside barrier.
Support resist at the psychological level of $70.
Crude Oil (WTI) CL1 Daily Chart – Continuous Futures
Source: TradingView, prepared by Richard Snow
| Change in | Longs | Shorts | OI |
| Daily | 8% | -7% | -2% |
| Weekly | 2% | 1% | 1% |
Brent Crude Oil Attempts to Trade Back Within its Defined Range
Brent crude oil attempted to break above the zone of resistance with a mid-point of $76.50, but has moved lower as of the US CPI data release. Appearing to find resistance around yesterday’s high, brent prices have moved through the 50% retracement of the major 2020 to 2022 move at $77, with an approach towards the descending trendline which served as prior resistance, now support.
The lower side of the support zine at $75.20 is the next level of support followed by last week’s low at $71.40. However, like with WTI, keep an eye out for a bullish crossover which could signal more upside to come. Resistance levels beyond $77 include the 50 SMA and the rough midpoint of the larger zone at $82.00, with the upper side of the larger zone at $89.00 a fair distance away.
Brent Crude Daily Continuous Futures Chart
Source: TradingView, prepared by Richard Snow
--- Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnowFX
