Crude oil weekly technical forecast: slightly harsh
- WTI crude oil price I saw the best week since June 2020
- Prices seem to be lower in the falling channel
- Does the 200-day SMA challenge the main downward trend?
WTI 4-hour schedule
WTI crude oil prices rose, rising by more than 11% in the best week after June 2020. Nevertheless, raw materials continue on a broader downward trend after prices rose in July. Moreover, oil has fallen lower within the declining channel, which is closely watched in the 4-hour chart below. WTI bounced off the floor of the canal last week and from zone 61.54 – 62.90.
In the short term, the 50-period Simple Moving Average (SMA) may rise above the 200-period limit for a longer period. This would create a rising golden cross, which could provide a technical bias. As a result, prices could rise to the ceiling of the channel, where the downward trend that has started since July is being tested. To better understand the broader prospects of the goods, let’s take a look at the daily schedule.
WTI daily schedule
WTI ‘s crude oil prices will indisputably remain skewed downwards, as prices will follow the limits of the declining channel after confirming the break due to increasing support from November. The focus is now on the 200-day SMA. This line could restore the dominant focus upwards if prices continue to consolidate below the channel.
Otherwise, the rupture under the canal will reveal a low of 57.27 in March. Confirming a closure below this price could signal a wider reversal, threatening to reverse the upward trend that prevailed between November 2020 and early July 2021. Otherwise, the rupture above the canal at the end of July will reveal a peak of 74.19 before focusing on the current 2021 high of 76.95.
– Written by Daniel Dubrovsky, DailyFX.com strategist
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