The main chart shows the daily timeframe perspective of the black gold (WTI) in which it can be seen that the price has been confined in a channel respected on multiple occasions! The red horizontal lines represent the nearby support and resistance levels drawn from the monthly charts. Technically should the channel break (the daily candle closing convincingly below the daily 50 EMA and the channel) we could see the price target the next support in sight at 55.00 level.
However have a look at the attached image above, where the price action is based on the weekly TF. Often, the 50 EMA act as a dynamic support and resistance. Here we see the weekly 50 EMA which could potentially prevent the price hitting the 55.00 level. So for this trade scenario to be valid we not only need to see the channel and the daily 50 EMA break but also the weekly candle closing below the weekly 50 EMA!
Should all this criteria meet we will wait for the price to retrace slightly before making a SHORT entry to target 55.00 level
Fundamental factors for the black gold are mixed in my perspective. Many countries are trying their best to limit their output but on the flip side with the trade war fears, the global slowdown would likely affect the crude's demands. So in a nutshell until a trade deal is reached we could see the WTI slip to 55.00 before it starts to rebound again higher in the future.
This just represents my analysis of this pair, shall the trade criteria meet in the future i will post the details in a new post.
However have a look at the attached image above, where the price action is based on the weekly TF. Often, the 50 EMA act as a dynamic support and resistance. Here we see the weekly 50 EMA which could potentially prevent the price hitting the 55.00 level. So for this trade scenario to be valid we not only need to see the channel and the daily 50 EMA break but also the weekly candle closing below the weekly 50 EMA!
Should all this criteria meet we will wait for the price to retrace slightly before making a SHORT entry to target 55.00 level
Fundamental factors for the black gold are mixed in my perspective. Many countries are trying their best to limit their output but on the flip side with the trade war fears, the global slowdown would likely affect the crude's demands. So in a nutshell until a trade deal is reached we could see the WTI slip to 55.00 before it starts to rebound again higher in the future.
This just represents my analysis of this pair, shall the trade criteria meet in the future i will post the details in a new post.
