WTI Crude August Futures only reached 4163, stopping short of the gap at 4217. A significant sell off held just 6 ticks above our buying opportunity at 3980/60.
Today’s Analysis
WTI Crude August minor negative daily candle in overbought conditions likely to signal more sideways consolidation phase, but there’s no sell signal yet. We have to assume the downside will be limited in the 2 month bull trend until we see a sell signal. Key support at 4000/3980 today. Longs need stops below 3950. A break lower is a short term sell signal targeting minor support at 3910/3890. If we continue lower look for a buying opportunity at 3830/10, with stops below 3780.
Longs at key support at 4000/3980 target 4060/70, perhaps as far as 4100/10. Further gains retest resistance at the recovery high of 4155/65. This may establish itself as the upper limit of a sideways range. However we cannot rule out a break higher to fill the gap at 4217. The next buy signal will be a break above 4240.
Trends
- Weekly outlook is positive
- Daily outlook is positive
- Short Term outlook is neutral