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WTI Oil Long – Can the 345-week old long term Resistance turn into a Support?
DISCLAIMER: I am not a financial advisor nor certified analyst and definitely not a pro trader. All contents discussed on this blogpost are solely my own personal views and for Trading education/entertainment purposes only. Commodities Trading is extremely risky where losses can exceed deposits. Enter with discretion. Do your own research and due diligence. The basis of this trading analysis is purely technical in nature.
I am not going to lie with what I am currently seeing in the Oil weekly chart right now, I am bullish bias once Oil’s price will either hold current price next week’s open or once bears try to attack a certain demand zone. In few moments, I will explain the technicals in-depth.
If I were to be asked, I will definitely have a full gas tank right now while I can. Or perhaps waiting a quick nose dive dip for Oil in the coming weeks. No need to explain further.
The current news revolving around the Black Gold (Oil) is bearish and I really like to point out a strong buy for WTI Oil now rather than sell the news from the norm. Just make sure to set the stop loss when the dip scenario comes in. These news will try to say increase in supply but I believe that in a post-pandemic world we are living now, it is time to move on. The global economy must push forward rather than to sit back waiting for magic to happen which will not come. The economy should recover and a must! I can sense that the Oil will enter a new upper range bounds bringing back the good old days in the year 2009 for Oil’s price at least above $80 per barrel.
Technically, I see a convincing immediate turning of 345-week resistance trendline into a short term support. The charts are obvious. I located three major resistance levels for the Oil dating back first to where the break-in support turned resistance occurred on November 24, 2014 then followed by the October 2018 peak and lastly on July just recently within this year 2021. The prices of these dates are all pointing to the $75-$77 range which Oil is currently exchanging at the time of writing this article and is acting as short term support. So a close above it next week will trigger a bullish push while Oil’s current weekly RSI is still above 50+ neutral zone. As a note, if bears are ready to push price down, $70 at least will be reactive demand and will be my entry. Failure to hold this price will test Oil’s 50-weekly SMA found near $65-67 levels.
At worst case scenario may come yet again, $50 dollar will be a fine stop loss mark. My long target exit is of course a 3-digit Oil price at least $100. A notably 1.50 risk:reward score for this trade plan.