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 2008 Price action now
6 month drop 7 month drop
4 month bottom 4 month bottom
V-shaped reversal ?
Several bullish factors in weekly chart
- W-shaped bottom in weekly chart strong suggests that price is rallying from a double bottom.
- Double bottom looks good because a ‘neckline’ feature i.e. the peak between both bottoms has already been penetrated.
- Price is off to a higher high and neckline could become a support.
- 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.
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.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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