Dec 31 2018

Crude Oil (WTI):- Ready to rise

Crude Oil (WTI):- After a sharp and continuous fall from $76.87 to $42.34, the Oil has started consolidating at lower levels. Few days back a double reversal candle “Bullish Engulfing” is formed, through which the decline in oil seems arrested by bulls. Momentum indicators started turning back after reaching their extreme oversold zones. Bullish divergences in both MACD (5,35,5) and RSI (14 Days) are witnessing that – the price action is likely to change their direction with respect to the indicators. In MACD a bullish crossover at oversold territory with Signal line is also seen. Fibonacci retracement is applied from the peak ($76.875) to trough ($42.34), through which we are getting the retracement levels at $ 55.53 (38.2%), $59.60 (50%) and $63.68 (61.8%). As per applied technical studies, the crude oil (WTI) is likely to rebound and will probably test back the said Fibonacci levels. Immediate target can be seen towards $55.00. Any close below $42.30, will negate the above view.