WTI testing the downtrend line • WTI moved significantly higher on Wednesday, confirming the positive divergence between the RSI and the price action. WTI is now at a critical point, testing the blue downtrend line and as long as we do not see a violation, the downtrend remains intact. However, I would maintain my neutral stance, since I would like to see a move below 101.10 (S1) before expecting another dip towards 99.00 (S2). On the other hand, a clear move above 101.70 (R1) could signal the violation of the blue downtrend line and perhaps target the 103.05 (R2) zone. Relying on our momentum studies does not seem such a good idea for now, since the MACD lies above its trigger line and is pointing up, while the RSI, although above 50, is pointing down. • Support: 101.10 (S1), 99.00 (S2), 98.00 (S3) • Resistance: 101.70 (R1), 103.05 (R2), 104.60 (R3)
Posted on: Thu, 17 Jul 2014 07:10:59 +0000
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