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WTI Crude Severely Overbought. Here's The Daily Forecast

Published 05/19/2020, 06:02 AM
Updated 07/09/2023, 06:31 AM

WTI Crude July contract has almost doubled in just 3 weeks. The break above 2800/2850 was our buy signal. Our longs worked perfectly with all targets hit as far as 3140/50 & we continued higher to 3310.

Today’s Analysis

WTI Crude July is severely overbought with shorts decimated before the June expiry. Severely overbought but no sell signal so shorts are too risky at this stage but a more sideways trend would not surprise. Minor support at 3200/3190 then better support at 3130/20. A break below 3100 targets 3070 then support at minor 3020/00. Try longs at 2940/20 with stops below 2900. Obvious first resistance at yesterday’s high of 3290/3310. A break higher always possible in this short squeeze targeting 3360, 3380 & resistance at 3465/85. Shorts need stops above 3520.

Trends

  • Weekly outlook is negative
  • Daily outlook is positive
  • Short Term outlook is positive

Latest comments

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