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Monday’s Technical Analysis: WTI Crude Oil

Posted by: : Paul EbelingPosted on: November 24, 2014 Monday's Technical Analysis: WTI Crude Oil

Monday’s Technical Analysis: WTI Crude Oil

WTI Crude Oil closed higher on short covering Friday.

The high range close set the stage for a steady to higher opening when Monday’s US session opens in New York.

Stochastics and the RSI are Neutral signalling that sideways to lower prices are possible near term.

If WTI Crude Oil extends the decline off of the June high, the 87% Fibo retracement mark of the 2009-2011 rally crossing is the next Southside target.

Closes above the 20-Day MA crossing are needed to confirm that a low is in.

WTI Crude Oil retested 77.20 and is still below it, the Bearish expectations is valid, waiting to extend the bearish wave to move towards 76.25 then 73.85.

My technical indicators are providing positive signals through Linear Regression Indicators, RSI and MACD indicating the possibility of positive attempts and then attempt to break 77.20, which will halt the negative scenario.

Support: 75.90, 74.95, 73.85, 73.00, 72.65

Resistance: 77.20, 77.85, 78.75, 79.35, 80.00

Recommendation: negative expectations below 76.30, risk-limit above 77.20.

Note: WTI prices fell 12% in October, the sharpest drop since May 2012, and have entered a Bear market as they fell more than 20% this year.

US Crude Oil imports have been declining on the back of the shale Oil boom that has brought the US near energy independence.

Crude Oil’s collapse is largely attributed to lower global demand, which was accompanied by more production from the Organization of the Petroleum Exporting Countries (OPEC). OPEC members, seeking to defend their market share of a highly oversupplied Crude Oil market, have engaged in a ‘price ware.”

West Texas Intermediate (WTI), also known as WTI Crude Oil or Texas light sweet, is a grade of Crude Oil used as a benchmark in Oil pricing.

This grade is described as light because of its relatively low density, and sweet because of its low sulfur content.

Crude Oil is the underlying commodity of Chicago Mercantile Exchange’s COMEX Oil futures contracts.

The price of Crude Oil is often referenced in news reports on Oil prices, alongside the price of Brent Crudefrom the North Sea.

Other important Oil markers include the Dubai Crude, Oman Crude, Urals oil and the OPEC Reference Basket.

WTI Crude Oil is lighter and sweeter than Brent Crude Oil, and considerably lighter and sweeter than DubaiorOman.

Have a terrific week.


Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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