Rebounds from 100-DMA once again

WTI pauses five-day losing streak, jumps over 1.50%. The US oil bounces-off 100-DMA support once again. Markets take profits ahead of the API stocks data. WTI (futures on Nymex) rallied more than $1 to daily highs of $37.91 in the European session, having dived out of the overnight bearish consolidation […]

  • WTI pauses five-day losing streak, jumps over 1.50%.
  • The US oil bounces-off 100-DMA support once again.
  • Markets take profits ahead of the API stocks data.

WTI (futures on Nymex) rallied more than $1 to daily highs of $37.91 in the European session, having dived out of the overnight bearish consolidation phase.

The black gold refreshed three-month lows at $36.43 in the US last session, as the sell-off in the US stocks exacerbated the pain in the higher-yielding commodity.

Looking at the daily chart, the price has found solid support at the 100-day Simple Moving Average (100-DMA), now at $36.75, which it has bounced-off for the second straight day on Wednesday.

Therefore, the bulls are looking to extend the recovery towards $39.80, this week’s high.

Acceptance above the latter could trigger a fresh rally towards the critical barrier aligned at $41.45, which is the convergence of the 200 and 50-DMAs.

Note that the averages are on the verge of forming a death cross pattern. Thus, the recovery could be seen as another opportunity to take profits on the long trades should the formation get validated in the coming days.

A daily closing below the robust 100-DMA support could accelerate the bearish momentum, opening floors for a test of the June low at $34.45.

To conclude, the path of least resistance appears to the downside and therefore, sell the bounce strategy could be adopted while trading the WTI barrel in the week ahead.

WTI: Daily chart

fxsoriginal

WTI: Additional levels

 

Next Post

Tenants Get Creative as They Look to Exit a Lease

Sat Sep 12 , 2020
If a landlord thinks a tenant can survive after the COVID economic crisis passes, they’re usually motivated to work on payment plans, according to Luis Martinez-Monfort, founding partner of law firm Gardner Brewer Martinez-Monfort. “The appetite to work through forbearance from both the tenant and landlord is pretty high because […]
Tenants Get Creative as They Look to Exit a Lease