WTI: One Support Left

WTI: One Support Left

Alpari Research & Analysis  | Feb 11, 2019 07:52AM ET


Time to update our traders about the situation on WTI oil, where in our opinion, the correction, which started in December, is coming to an end. Buyers had a good run but it looks like it is time for them to escape from the market and look for proper trading occasions elsewhere.

The bullish correction started in the second half of December and the price managed to climb almost 14 USD higher. That is definitely a nice score and buyers can be happy with themselves. Time to close the door and say goodbye I guess. What we see on the chart is the Head and Shoulders pattern (yellow) that tops the bullish correction. Formation is already up and running (giving the sell signal) as on Thursday we broke the neckline of this pattern (blue). On Friday, the price tested the broken support as a closest resistance, which was a clear confirmation of a bearish strength.

Maybe you are right if You are not convinced yet. The price has one more support to break, if we want to talk about the clear bearish situation. That support is the purple line connecting recent important higher lows. Price closing a day below that line will be a proper sell signal with the potential target on the lows from December. So basically we are talking about another leg down here and a trade with a marvelous risk to reward ratio. WTI Oil Chart

Alpari Research & Analysis

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Jan Skilbrei
Jan Skilbrei

you must mention, that there is also an inverted head and shoulder pattern, with a high risk reward, where it is now at the lower part of the shoulder, at support. maybe less risky to buy, then to sell here?  ... (Read More)

Feb 11, 2019 05:10PM GMT· 1 · Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+