6 May 2015
WTI crude: severely overbought – DayTradeIdeas
FXStreet (Barcelona) - Jason Sen of DayTradeIdeas, notes that WTI Crude June contract technicals suggest it remains severely overbought, and further suggests buying dips towards 6005/00.
Key Quotes
“WTI Crude severely overbought short term & on the daily chart so a pull back is possible to support at 6005/00. Use this as a buying opportunity with a stop below 5960. Failure to hold above 6000 however signals a false break higher yesterday. This would be quite negative going forward triggering moves to 5935/30 then 5885/80. Below here we have quite good support at 5860/50, which must hold the downside or the eight week Bull trend will have been broken.”
“First resistance at 6100/10 but above here we meet strong resistance at 6180/85 this week. Try shorts with stops above 6210. Just be aware that a break higher could then target 6290/6300.”
Key Quotes
“WTI Crude severely overbought short term & on the daily chart so a pull back is possible to support at 6005/00. Use this as a buying opportunity with a stop below 5960. Failure to hold above 6000 however signals a false break higher yesterday. This would be quite negative going forward triggering moves to 5935/30 then 5885/80. Below here we have quite good support at 5860/50, which must hold the downside or the eight week Bull trend will have been broken.”
“First resistance at 6100/10 but above here we meet strong resistance at 6180/85 this week. Try shorts with stops above 6210. Just be aware that a break higher could then target 6290/6300.”