Chart of the week – WTI Crude (cash)
WTI Crude (cash) further potential recovery ahead (short-term technical analysis)Time stamped: 29 Aug 2021 at 4:00pm SGT (click to enlarge chart)
Source: CMC Markets
- The recent 6-week of decline of -19.7% seen in WTI Crude (cash) from its 6 July high of 77.18 to 23 August low has managed to stall right at the former long-term secular descending resistance from its current all-time high of 147.31 printed on July 2008 now turns pull-back support at 61.95.
- It has recorded a weekly gain of +10.8% for week of 23 August, its largest gain since September 2020. In addition, it formed a weekly “bullish Marubozu” candlestick right at the aforementioned 61.95 significant pull-back support. These observations suggest that the 6-week of corrective decline from the recent July high has reached an inflection point to kick-start at least another potential medium-term (multi-week) bullish impulsive up move sequence.
- Watch the 65.85 key short-term pivotal support (the 50-period moving average & the 50% Fibonacci retracement of the current up move from 21 August low to 27 August 2020 high) for a further potential push up to retest 70.80 (the intermediate descending resistance from 6 July high) and above it may open up scope for a further rally towards the next resistance zone of 74.45/75.70 in the first step.
- On the other hand, a 4-hour close below 65.85 negates the bullish tone for a slide to retest the 61.95 key medium-term pivotal support.
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