Forex Marketz Daily Forex News – Fully Markets Update
WTI Crude (49.34)
Some talking points to consider in this market:
- WTI is holding above the RSI (5) support level at 40. Worth watching this level.
- Now looking to close above the supports at 45.64 and 46.15 on a daily close basis.
- Trade strategy: Waiting for a breakout higher
We have seen a new selloff in the price of WTI Crude Oil from a more than two month high. This has some buyers worried, as well as the bulls but this could be a setup for a more aggressive bounce higher. WTI could be looking to make an impact on the weak US Dollar and strength has been building up in the relative strength index (RSI). There is also a move higher in the oversold index. See the below daily WTI Crude MT 4 chart for today’s technical analysis.
Technical Analysis
Looking at today’s WTI technical analysis, the charts look constructive for a move higher. The support levels near the double bottom at $46 per barrel and $42.05 look like strong support levels. A break below here could challenge 37.01/$37. The trend line that begins off the August 24 low is now in focus. A break above here will shift price focus towards the $50 dollar per barrel and higher price levels.
The RSI is a very helpful tool when analyzing a commodity like WTI and Crude oil. One thing to look at with RSI are support floors. In this case note the level at 40 on the RSI. The daily WTI chart as stayed above this level since August. This could indicate a bearish momentum floor is now in place. In other words, we could now see a more aggressive move higher in the cards. Also, note that we need to pay attention to the US Dollar as it is critical to the direction of WTI and Crude oil.
