Monday, December 14, 2015

WTI Oil Faces Resistance At $38/bbl



WTI Crude Oil (Nymex) : Sell @ 35.41 (CMP) | Stop @ 38| Target @ 26.75 — 21.65 
The WTI Oil is currently quoting at $35.4/bbl trading below the previous bottom point B at 37.75 level. The above technical chart shows A-B-C Pattern, with Wave C is in continuation. The chart indicates that downfall in prices will continue in the coming sessions if resistance of 38 holds on daily closing basis. .
WTI Oil had fallen from 62 (Point A) in June and tested the support level of 37.75 (Point B) in August. Thereafter, prices retraced by more than 50% of fall seen from Point A to Point B and tested the high of 51 (Point C) nearing to 61.8% and resumption of down trend was seen.
WTI Oil prices are trading below the previous bottom  of point B at 37.75 and is expected to continue to move downward unless a breakout occurs above 38 on closing basis. If  prices breaks the support of 34.75 then prices would weaken further.
The difference between Point A and Point B comes to 24.25 points. Considering 100% of this difference from Point C, the downside target comes to 26.75 level. Thereafter, the next target could be 21.65, which is 121% of the same difference.
However, if prices reverts from the current level and crosses the resistance of 38 on closing basis then prices may rise towards 51 level.


No comments: