Chart pattern formed- Breach of resistance on daily plotting, Symmetric triangle resistance break-out and extension of consolidation phase by retracing more than 38.2% Fibonacci retracements, the uptrend is now on the verge of retracing upto 50% on monthly terms.
In this process of the bull run, WTI crude prices have hit 3 years highs, has occurred exactly at resistance of $61.88 levels to counter these rallies. But bulls have shrugged off these indications and managed break-out decisively with the stern bull candle with the big real body.
For today, the rallies are dragging further to new the highs of $64.05 levels, both leading as well as lagging indicators are substantiating these buying indications.
But on the contrary, let’s have a glance through the major trend that was now has gone into consolidation phase that was jerky way back in mid-2015. From massive slumps from the peaks of $114 levels shouldn’t be disregarded and jumping to conclude this as a robust uptrend would be unwise, it is just 38.2% retracements.
Having mentioned that, we aren’t a pessimist, for now, more rallies on cards upto another major resistance at $70.18upon crossover.
Major supports are observed at $62.54 levels.
While both leading oscillators have been converging upwards but indecisive currently.
The sustenance above DMAs with crossover indicate more rallies that head for next resistance.
Trade tips: We’ve already advocated adding longs using contracts of near-month tenors with a view to arresting upside risks, we reiterate that it is wise to use dips to deploy long hedges using these WTI derivative contracts.
I also notice this kind of analysis in XAUUSD instrument too. I really highly suggest you to stick 1 in advice and be firm on it. If you are not sure with your analysis, better to put it as "Neutral". You can't sit on the fence.