A clear direction is lacking on the weekly charts. Rough boundaries come in at 42 on the downside and 54.40 on the upside. Whether this rather volatile trading range-like pattern is part of a basing formation or merely a pause within the long-term down trend is not yet clear.
For the near term the outlook is somewhat negative. The lack of demand to breach the 54-zone in combination with lack lustre indicators suggest sellers still hold control. Focus is on the 42.62 support area. If cleared, sellers should push towards 38.07 (1st projection) and roughly 34 without too much trouble. Such a move is a bearish signal for the weekly chart as well.
Until/unless 42.62<>42 is cleared we suggest a neutral stance.
- Current trend: neutral
- Outlook/expectations: uncertain, bearish undertone
- Strategy: avoid or trading-short
- Support: 42.62 / 38.07* / 33.95-
- Resistance: 54.40+
Daily chart WTI Crude (continuous contract)
Weekly chart WTI Crude (continuous contract)