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WTI Crude: Try Longs With Stops Below 4950

Published 05/23/2017, 06:08 AM
Updated 07/09/2023, 06:31 AM

WTI Crude Daily Chart

WTI Crude meets 50% Fibonacci resistance at 5115 as we over run to 5143. However we also have to the 500 day moving average for the July contract at 5110/15 and also the 100 dma for the continuation contract, so strong challenges in severely overbought conditions and do not forget we are in a 5 month bear trend. Failure to hold above 5090 targets 5070 then first support at 5050. However further losses not out of the question for 2030/25 and perhaps as far as the best support for today at 4990/80. Try longs with stops below 4950.

We have already held just above 5070 on the dip yesterday. A break above yesterday's high at 5143 targets the 200 day moving average at 5195/99. In overbought conditions gains are likely to be limited, but if we continue higher look for a move towards the 100 day moving average at 5235/40.

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