Chart of the Day: WTI crude (XTIUSD)
I looked at Brent crude as the Chart of the Day yesterday, but I’ve switched to WTI crude today, which technically looks compelling. Granted, there’s still some work to be done to attract the trend-following (CTA, or “commodity-trading advisors”) crowd, but the bulls are clearly putting in some moves.
The trend of lower highs is over, with price smashing through downtrend resistance. Price has also closed above the double-bottom neckline at USD $60.98, which on a pure technical standpoint suggests a move towards the USD $71.25 to USD $71.50 area. Stochastic momentum is clearly to the upside, so the bias is progressively bullish. In fact, if we zone out we can see the setup looks eerily similar to the setups seen in 2011 and 2013/14.
Of course, we can work open orders into lower timeframes and look at hourly charts. But if I look at the daily for perspective, the market is clearly warming to what they see. A trending market is an interesting market, as the CTA crowd will inject new capital to the market. But more work is needed to form a bullish trend — one to watch.
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