First signals of bottoming in WTI Crude Oil, Longs Favoured
Breakout off short-term resistance at 35$, and a more significant breakout off the June 2014 downtrend line, is positioning WTI Crude Oil Futures for a great long opportunity. Buying this breakout, targeting the next visible resistance target (Yearly Pivot and 50-week MA, also overlapping with the 200-day MA), and placing stops below the downtrend line, makes total sense here in my opinion.
The RSI made a higher low on the 13-year-low print in february 11th, and oil has been a one-way street ever since, with RSI flashing a clear buy signal. The only dubious indicator is MACD, which is making a positive print (fast MA going over the slow one), but it remains in a slow downtrend since June 2015.
The timeframe of the trade should be similar to last year's impulse towards 60$, hence I expect WTI to test 45$ in early May. Let's see!
The RSI made a higher low on the 13-year-low print in february 11th, and oil has been a one-way street ever since, with RSI flashing a clear buy signal. The only dubious indicator is MACD, which is making a positive print (fast MA going over the slow one), but it remains in a slow downtrend since June 2015.
The timeframe of the trade should be similar to last year's impulse towards 60$, hence I expect WTI to test 45$ in early May. Let's see!