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Technical Analysis

Technical Outlook: WTI Oil – Limited Correction Seen For Now

Typography

WTI oil is in green for the second day after the last week’s bearish acceleration from $46.46 found footstep at $44.22.

Recovery is lacking momentum for stronger upside action and was so far capped at $45.00, however, overextended daily studies suggest stronger correction.

Daily RSI bounced from oversold zone boundary while slow stochastic is turning north in deep oversold territory.

This may generate bullish signal for further recovery which requires break above $45.16 (Fibo 38.2% of $46.69/$44.22 downleg) to generate bullish signal for extension towards $45.34 (hourly cloud top) and $45.75 (Fibo 61.8% of $46.69/$44.22).

However, bearish technicals and strong negative sentiment keep oil price under pressure that may limit corrective action ahead of final push towards $43.74 target (05 May low).

Stronger correction could be expected on break above $46.69 (12 June lower top) of braoder downtrend from $51.98.

Res: 45.16, 45.34, 45.75, 46.21
Sup: 44.22, 44.00, 43.74, 43.06