WTI Crude Oil (Nymex) CMP: $36.20/bbl
Strategy: Sell @ 33 (CMP) | Stop @ 38.5| Target @ 26.9 — 25 — 21.4WTI Crude Oil technical chart indicates that prices will continue to decline in the coming sessions if it fails to cross the resistance level of 38.5 on daily closing basis. It is currently quoting at $33/bbl, below the previous bottom of 34.5 (Point Y).
Strategy: Sell @ 33 (CMP) | Stop @ 38.5| Target @ 26.9 — 25 — 21.4WTI Crude Oil technical chart indicates that prices will continue to decline in the coming sessions if it fails to cross the resistance level of 38.5 on daily closing basis. It is currently quoting at $33/bbl, below the previous bottom of 34.5 (Point Y).
The Long term chart shows formation of A-B-C Pattern with wave C in continuation, Where as the short term chart is forming Rising Wedge Pattern continuation, trading below the breakdown level of 35.9 which indicates correction in prices to continue.
WTI Crude Oil fell from 43.5 (Point X) in November end to the low of 34.5 (Point Y) in Mid December last year. Thereafter, prices went in to consolidation phase and retraced over 50% of the fall from Point X to Point Y and touched 38.38 on the higher side, before resumption of downtrend.
WTI Crude Oil is expected to decline further from the current levels if it sustain below the level of 36.
The difference between Point X and Point Y comes to 9 points. Considering 100% of this difference from breakdown point Z @ 35.9, the downside target comes to 26.9 level. Thereafter, the next target could be 25 and 21.4, which are 121 and 161% of the same difference.
However, if WTI Crude Oil reverts from the current level and crosses the resistance of 40 daily on closing basis then prices may rise towards 51 level.
