Crude Oil Price Technical Analysis
Likewise, oil prices also affect the Forex market, and therefore, it’s hardly surprising that many Forex traders also keep an eye on crude oil prices, and many even trade crude oil as a way to diversify their trading. To help you expand your trading horizons, the DailyForex trading room is happy to provide you with regular crude oil price technical analysis – we hope that it helps you trade profitably!
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Crude Oil Price Technical Analysis
The WTI Crude market has seen quite a bit of choppiness recently, and although the day was positive during Friday, I had recently expressed that I was going to start following the shorter-term charts. Quite frankly, no matter what news crosses the wires at the moment, the market simply needs to grind its way back and forth.
The WTI Crude Oil markets had a positive session on Thursday, after initially dipping below the $94.00 handle. However, the hammer that had formed on Wednesday certainly suggested that there was support below, and we did in fact see that during the session. The biggest problem now is the fact that there is so much resistance above. In other words, I absolutely hate this market at the moment for anything more than a short-term trade.
The WTI Crude Oil markets fell significantly during the session on Wednesday, falling as low as the $92.00 level. The crude oil markets in the United States reported that there was less in the inventories than anticipated, and as such this of course was bullish for oil in general. Because of the bounce, we have formed a massive hammer.
The WTI Crude Oil markets fell during the session on Tuesday, plunging towards the $94.00. This area has been supportive lately, as well as resistive.
The WTI market fell during the Monday session, closing just below the $95.00 handle. This market looks like it's trying to find some type of support in the $94.00 area, and as a result I think that we will see fairly tight trading over the next couple of sessions. In the long run, this could be a different story but we should see some type of consolidation in this general vicinity.
The WTI Crude Oil market continues to hang about the $96.00 level, as it had most of the week. You will see though that I have included an hourly chart from this market, in order to show the significance of the bounce that we saw happen on Friday. Because of this, it appears that the market is certainly more bullish than anticipated, but overall I still look at this market as being very choppy to say the least.
The WTI Crude markets fell during the session on Thursday, but did bounce significantly in order to form something along the lines of a hammer. This of course is a bullish sign, but I see the $97.00 level just above as offering resistance.
The WTI Crude market had a positive session on Wednesday again, as we continue to bounce around in a consolidation area. Looking at this chart, I can see that the $97.00 level begins a significant amount of resistance. I believe that this resistance area runs all the way up to the $98.00 level, and possibly even higher. There is a significant amount of noise from back in January in this general vicinity, so this isn't exactly unprecedented.
The WTI Crude market had a slightly negative session on Tuesday, continuing the lack of bullishness that we've seen over the last three days. The candlesticks for Friday and Monday both look very shaky at best, but I do see significant support at the $95.00 level. Going forward, I believe that this market is trying to run out of steam and start falling again, but until we get a close below the $95.00 level, I would be a bit hesitant to short this market.
The WTI Crude market tried to rally during the session on Monday, and while he did managed to break above the $97.00 level at one point in time, and you can see that the market got pushed back down. As a result, this candle that formed for the Monday session is indeed a shooting star, and does look very bullish at this point in time.
The WTI Crude market had a very strong showing during the session on Thursday, reclaiming all of the losses that we found in this marketplace on Wednesday. Ultimately, we close right around the $94.00 handle, and this of course suggests that the $95.00 level above will continue to be resistant as well.
The WTI markets fell during the session on Wednesday, as the inventory number in the United States came out much larger than expected. This of course affects the whole supply and demand equation when it comes to this market, and as a result it's not surprising to see this market fall.
The WTI Crude had a negative session on Tuesday, pulling back from just below the $95.00 level. I have been speculating recently that we may have just entered a previous consolidation area, and that we could see a bit of choppiness between the $92.00 level on the bottom, and the aforementioned $95.00 level on the top.
The WTI Crude market had a strong showing during the session on Monday again, smashing above and trying to break above the $95.00 handle. It is at the $95.00 level that I feel this market could go much higher if we get above.
The WTI market fell during much of the session on Friday, but as you can see bounced off the $92.00 level in order to form a hammer. This hammer is placed in an area that I find very interesting as it does suggest that perhaps the $92.00 level is now trying to act as support.