05.01.201614:59 Forex Analysis & Reviews: Technical analysis of WTI for January 05, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Crude price downtrend has not yet shown any signals of a longer-term reversal and the current wave up should only be considered as a correction.

While moving down, WTI formed the support near the mark of 40 that later, on December 7, 2015, has been broken. The price has been moving within the descending channel, although it also has been broken to the downside providing additional confirmation of an ongoing downtrend. Currently, the price returned back the lower trend line of the broken descending channel that is acting as a resistance, which apparently was rejected.

Consider selling WTI on corrective waves up while the price is not too far from the 38.30 resistance area (R1). The 161.8% Fibonacci retracement (S2 - 31.70) applied to the latest corrective wave up could be used as the nearest target.

Support: 34.30, 31.70

Resistance: 38.30

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.