WTI Crude – New Trading Range Being Established?

WTI has been in consolidation for most of the last month, but a rally today has seen it break above here and more gains could follow.

WTI has broken above 17 September highs and is currently showing no sign of exhaustion. It is up more than 4.3% on the day and closing in on a key resistance level around $48.80-49.20, a break of which would be a very bullish signal.

WTI 4hr

This area marks the highs of 29 July and 31 August, which in itself makes it a significant level. The 89-day simple moving average also crosses at this level which could provide further resistance.

A failure to break through this level would leave WTI stuck in a trading range, with the lower bound being around $42.70-43.10 and the upper being $48.80-49.20.

WTI Daily

A break above, however, would suggest the market bias has become more bullish, with the next notable level coming around $50.25-51.00. While this could offer resistance, it may prove temporary coming after such a significant break. Above here $53.50-54.00 could be key.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam