- Oil prices achieved balance, the US dollar performance seems to be a key factor for the commodity price
- WTI (OIL.WTI on xStation5) remains above a neck line being a part of an inverted head and shoulders pattern (SHS)
- Shorter-term time frames could bode well for the price of crude
Oil prices have been on the sidelines of late which seems to be in line with the latest remarks from OPEC delegates who have underlined a need to get balance between oil supply and demand. On the flip side, the stronger US currency could be a drag on crude prices, hence further moves on the greenback could steer the commodity price in the nearest future. In this respect it’s worth mentioning that the past week brought the better performance of the USD which in turn put the brakes on crude to some extent. Having said that, a technical analysis appears to be uninterruptedly supportive of a bullish scenario.
A weekly interval illustrates that oil prices are stuck between a broken neck line (support) and a lower boundary of a channel (resistance). Notice that the price has failed to go back to the channel several times as of yet.
WTI oil prices closed last week above a neck line being a part of an inverted SHS pattern suggesting possible gains ahead. Source: xStation5
Daily candlesticks confirm that a neck line remains a pivotal support for bulls right now. Moreover, the Friday’s candlestick seems to be especially of note as it drew a long shadow suggesting a possible return of buyers. If so they could aim for $53.45 and $54.35 respectively as their closest resistances.
Bulls are confirming strength of the ongoing move as the price is plodding above a neck line. Source: xStation5
When we take a look at a H1 time frame one could spot a possible simple correction which ends in the vicinity of a 50% retracement. Furthermore, the price has been already able to get out of a descending channel which may suggest that the pullback has already ended and gains could be in the offing. Having assumed that scenario a pick-up towards $52.75 might be likely.
The chart above suggests that the recent pullback has been short-lived, hence an increase could continue. Source: xStation5
Buyers’ resolve can be noticed at the chart beneath as well as the price managed to stay above a 112.8% retracement this morning. That said, the highs from Monday remain the nearest support for crude prices.
The price managed to stay above a 112.8% retracement which could bode well for crude prices in the nearest future. Source: xStation5