Weekly Technical – WTI Crude Oil – June 27th 2022
The price of WTI Crude Oil charted three weekly candlesticks in the red: Doji-star with local peak above $120 per barrel, a rebound candle with a long downside body (-8.5%, closed above Ichimoku Conversion line), and a candle with a small body and long downside shadow (tested the Base line but did not breach it). Such a pattern, together with the sentiment of the rest of technical indicators, points to a possible consolidation phase in near future.
The Ichimoku Cloud indicator remained bullish as the leading span is well in the green, the price is still above the Base line that acts as the support curve so far. Given the past week’s performance, the bulls are still ready to buy the black gold on rebounds from highs. On the other hand, the Conversion line is above the pierce, which does not add power to the uptrend.
The ADX and DI indicator shows a similar sentiment. The mainline dropped from the recent peak to almost zero, reflecting a much weaker momentum and retracement. The positive surplus between the green and red lines squeezed to almost zero. If the upcoming week showed further losses, then the indicator could perform a bearish crossover. The RSI oscillator slid towards the middle zone as well.
Another weekly chart setup below shows preliminary signs of a bearish reversal. The price of oil tested the middle line of the Williams Alligator indicator, although the sentiment remained bullish. However, the MACD indicator performed a bearish crossover, while its histogram dropped into the bearish zone.
The Awesome Oscillator still shows quite a robust momentum but its bars turned red, reflecting the 3-weeks decline of the price. If the bears were able to keep pushing the price lower with the weekly close, then we’d see an acceleration of the correction. Best wishes traders!!