WTI Down From Seven-month High, But Bullish Momentum Still In Place
West Texas Intermediate crude oil inched lower on Tuesday after hitting a seven-month high a day earlier. However, according to analysts, the market momentum looks strong, based on a weak dollar, attacks on Nigerian oil infrastructure and falling U.S. crude inventories. As seen on the daily chart, the price has gradually moved down to 49.77. RSI (14) is hovering just above the average at 53.16, suggesting an unclear direction. The Stochastic chart is approaching the oversold zone but the selling force is not yet weakened since the %K line is still below %D line. The price is expected to continue correcting to test the support level at 49.37 before a bounce back occurs.
Sell at 49.77, Stop loss at 50.29, Take profit at 49.37