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Has WTI bottomed yet? Bullish price action from 3 charts

We look at monthly, weekly and daily charts where price action and chart patterns paints a bullish picture for WTI.

 

4-month reversal similar to 2008 bottom?

There are strong similarities between the current setup and WTI bottom back in 2008. These are visible in the monthly chart. Duration appears to be a strong factor.

Price action in 2008Price action now
6 month drop7 month drop
4 month bottom4 month bottom
V-shaped reversal?

WTI monthly chart Feb 2008 - present

WTI monthly chart Feb 2008 – present

 

Several bullish factors in weekly chart

  1. W-shaped bottom in weekly chart strong suggests that price is rallying from a double bottom.
  2. Double bottom looks good because a ‘neckline’ feature i.e. the peak between both bottoms has already been penetrated.
  3. Price is off to a higher high and neckline could become a support.
  4. In addition, 2014-low was also broken on the way up. This is a psychological level – price punching above clears the way for a retracement/recovery of 2014 losses.
Double bottom and bullish chart pattern on weekly chart

Double bottom and bullish chart pattern on weekly chart

 

Price action on daily chart

And finally this is the chart that is in favour of going long for swing traders – a bullish expansion above 3-month highs and higher weekly-lows since 4 weeks.

WTI chart shows mth-mth, wk-wk trend aligned bullishly

WTI chart shows mth-mth, wk-wk trend aligned bullishly

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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2 thoughts on “Has WTI bottomed yet? Bullish price action from 3 charts”

  1. Daniel Ku Guet Liang says:

    Hi Sir, must the week close abv Jan high or it is still bullish as long as the week close above Mar high? Appreciate your insight. Thank you.

    1. Jerome Lee says:

      As long as it doesn’t close back below previous year low. However if price can maintain above Jan high, it could retrace to it as support.

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