In the analysis of yesterday, we noted that the strong bulls can be seen around the support 99 5, but the strong bears were also seen around the 100.0 level and as such we expect a short-term sideways movement. In this regard, we are not far prices have a higher rebound of 99.5 and just over the 100.0 resistance in early US session. However, prices were pushed higher after sharply, not only breaking 100.0 100.5 but also the resistance to rapid fashion, despite changes in risks being bearish during the period. Basically, economic data released yesterday also most of the bearish time and should not have contributed to this upward thrust.
Time Table
Therefore, it may be an understatement to say that the underlying WTI sentiment is bullish. However, given that the general direction in the S / T remains bearish, it is difficult to imagine prices can continue to rise without the appropriate basic support. From a technical standpoint, the stochastic indicator is strongly overbought Stoch with two lines and score lower signal now - suggesting that the bearish cycle can be set soon. In addition, the prices seem to be in a narrow consolidation zone between 100.5 to 100.8 similar to what we saw back on March 27. As these activities can be more optimistic unlikely, despite the surprise jump yesterday in particular with traders likely to stay on the sidelines ahead of the non farm payroll subsequent risk of the event.
Table Daily
long-term chart is more optimistic, however. The rally coincided with a bounce off the trend line rising, while the Stochastic curve flattened around the level of 50.0 - a significant inversion level seen back at the end of November 2013. Therefore, with price break of 100.5 resistance, the uptrend is temporarily restored, and a move to 103.0 becomes possible. However, for a full return of the upward trend of prices will push beyond high in 2014 will open the possibility for other upward targets.
The only problem is that the fundamentals have remained weak and the latest manufacturing data worldwide have entered lower than expected. The only thing the WTI Crude has going for it is a recent report suggesting that US shale oil reserves may have been overstated. If this is indeed true, at least we should be able to see the issue slightly eased oversupply. But it does little on the front of the application, and as such this news would only keep WTI prices afloat rather than being outright bullish. Nevertheless, we should be able to see the tightening of Brent / WTI spread and can present some speculative opportunity for traders
Links:
Gold Technicals - strong Bears Sighted Ahead Of NFP [
S & P 500 - Bulls Alive and Well Despite slightly lower yesterday
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