Technical analysis update: WTI oil (19th January 2022)
Today WTI oil reached 87.90 USD per barrel which coincides with a new high in price that has not been seen since 2014 and which confirms the continuation of the uptrend. We continue to maintain a bullish outlook on WTI oil in the medium-term and long-term. However, in the short term we are becoming very cautious as some technical indicators reached an overbought condition which suggests that the price of USOIL might be ripe for correction before continuing higher. We will watch the support level at 85.39 USD (previous high from 25th October 2021) and its ability to hold selling pressure in case it occurs. Our long-term price target remains 90 USD per barrel.
Technical analysis - daily time frame
MACD and Stochastic remain bullish. RSI reached overbought territory which suggests that USOIL might retrace lower before continuing higher. DM+ and DM- continue to show bullish conditions. Additionally, ADX increases which suggests that the bullish trend is gaining momentum. Overall, the daily time frame remains bullish while it signals possible correction in price.
Technical analysis - weekly time frame
RSI, MACD and Stochastic are all bullish. DM+ and DM- performed the bullish crossover recently. ADX undergoes reset. Overall, the weekly time frame is bullish.
Support and resistance
Immediate resistance sits at 87.90 USD. Support 1 is at 85.39 USD while Support 2 lies at 80.81 USD. 61.76 USD. Support 3 is then at 78.28 USD while major support is at 61.76 USD.
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Technical analysis - daily time frame
MACD and Stochastic remain bullish. RSI reached overbought territory which suggests that USOIL might retrace lower before continuing higher. DM+ and DM- continue to show bullish conditions. Additionally, ADX increases which suggests that the bullish trend is gaining momentum. Overall, the daily time frame remains bullish while it signals possible correction in price.
Technical analysis - weekly time frame
RSI, MACD and Stochastic are all bullish. DM+ and DM- performed the bullish crossover recently. ADX undergoes reset. Overall, the weekly time frame is bullish.
Support and resistance
Immediate resistance sits at 87.90 USD. Support 1 is at 85.39 USD while Support 2 lies at 80.81 USD. 61.76 USD. Support 3 is then at 78.28 USD while major support is at 61.76 USD.
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Trade active:
In tandem with our expectations the price of USOIL started to correct. USOIL fully retraced to its 10-day SMA when it fell to as low as 82.81 USD per barrel today. This new low acts as immediate support and we will observe whether it will stop further selling pressure.
Trade closed: target reached
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