WTI Crude – 20 June 2017

The longer term remains unchanged: relatively neutral between 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.

The near term outlook is negative, especially now that prices have reached the main support area and sellers are hardly showing any respite. Focus is fixed 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)