Exhausted Bulls, Retracement expected in WTI.
Dave Green • 1 min read
WTI crude oil is a charm since its consistently making us achieve more than 50 green pips almost at every trading day.
Recalling the analysis report of WTI shared on 25th Jan, where we recommended to buy positions only above the $52.75 level with an initial target of $53.20 and then $53.45. These are already accomplished.
However, we can see on the chart that the WTI has broken above the ascending triangle pattern, and outraged the triple top pattern at $53.65 in 4 hours timeframe. Moreover, a bullish engulfing candle in H4 is giving support to buying sentiments.
Yesterday night, the U.S. Energy Information Administration (EIA) released the crude oil supplies figure, showing a rise of 2.8 million barrels to 488.3 million barrels in domestic crude-oil inventories for the 3rd week of Jan. Surprisingly, the investors shrugged off anxieties over expanding U.S. crude oil inventories.
At the movement, the WIT trades at 53.87, adding +1.12 points and +2.12% for the day. The RSI is trading at overbought territory and we can a slight retracement in the Oil. I would recommend having a sell position only below $54.15, having to take profit placed at $53.80 and then at $53.60. Besides this, the breakage above $54.15 is likely to open more room for buying until $54.45.
Hoping for the best.!!