After making a low on the year at 42.06 in the middle of March, WTI Crude has been in a bullish correction. Let’s follow up on this correction.
In the daily chart, we can see the market forming a price bottom. Note that price has broken above the 54.45, previous high on the year. Indeed just looking at price action we can see that the decline in oil has stalled and shifted at least into a sideways market.
Last week, after another bullish attempt, the market is starting turn more bullish for the short to medium-term. The RSI has broken above 60, which reflects loss of the prevailing bearish momentum, and if it tags 70, it would show bullish momentum. With price holding above the 54.45-50 area, WTI Crude Oil has at least upside risk towards the 58.90 high this week. A break below 50 might be needed to revive the bearish outlook.
In the 4H chart, we can see a persistent uptrend forming. The RSI has held above 40, which reflects maintenance of the bullish momentum. The price action during the 4/20 US session provided us a bullish engulfing, and thus bullish continuation candle.
For now, in the short-term, we can look for a rally towards the 58.90 high up to the 60 psychological level.
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