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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:

  1. 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.
  2. 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.
WTI daily and weekly chart

WTI daily and weekly chart | Source: Tradingview.com

 

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.*

WTI monthly chart from September 2014 to present

WTI monthly chart from September 2014 to present

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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