3 potential supports, retracement zones for WTI long continuation
In these charts, 3 potential support/retracement zones for WTI long continuation trade. WTI is nearing first potential support so it is a good time to keep an eye on.
Potential support zones here doesn’t mean that we can just put in buy limit orders and get away with it because:
- Short term trend is down now so even if one of these zones is the right support, price could easily overshoot on the down side.
- There are three potential support zones. Each one could have as many reasons to make it a good support but only time will tell which one is the correct turning point (or maybe none of them).
Better to watch price action vigilantly before committing to action.
Chart #1-2 – Daily timeframe (top) and weekly timeframe
- Top chart shows a confluence of rising equidistant channel with previous top printed in January.
- Bottom chart shows a 1-year trend line going back to June bottom last year.
Chart #3 – Monthly chart from September 2014 to present
- Former 3-year high at around 62.50 region printed in May 2015 could become a throwback support.
*This chart is my basis for looking at WTI long continuation. With a new 52-week high this year, WTI terminated it’s previous year to year down trend. Additionally it left behind a 3-year reversal pattern. This pattern makes it more likely that WTI is now in a bullish trend.*
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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