Chart of the Week – Potential bullish impulse move resumes for WTI Crude
VSheart of the week – WTI Crude
Potential bullish impulse move resumes for WTI Crude
Short and medium term technical analysisTimestamp: April 17, 2022 at 12:00 SGT (click to enlarge chart)
Source: CMC Markets
- The recent 6-week corrective decline/consolidation seen in the WTI Crude (cash) which recorded a decline of -29% from its March 7, 2022 high of 131.83 is likely to have formed a bottom to medium term on April 11, 2022 which could initiate another leg of the streak of potential impulsive upside moves in its medium-term uptrend phase which remains intact from its December 2, 2021 low at 62.90.
- Several technical elements support the aforementioned recovery scenario; the short-term momentum reading has turned positive, as seen by the movement of the 4-hour RSI oscillator, as it staged a bullish break against its corresponding former declining resistance on April 13, 2022 after issuing a prior bullish divergence signal.
- Second, price action has just formed a weekly bullish reversal “Morning Star” candlestick pattern that indicates major potential. (seen on a weekly chart rather than shorter time horizons) inflection point for a change in sentiment from bearish to bullish.
- If the key medium-term support at 93.50 holds, WTI Crude (cash) should see further potential upside towards the resistance area at 115.40/118.20 initially. (March 24, 2022 swing high and a group of Fibonacci Extension/Retracement levels).
- Conversely, a break with a 4-hour close below 93.50 invalidates the resumption scenario of an extension of the corrective decline towards the next support at 85.35/82.70 (the former swing highs of the 25th October 2021/November 1, 2021/November 10, 2021).
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