Technical Analysis – OIL FEB 14, 4-Hourly: December uptrend seen pushing to resistance retest
December 17, 2013 10:06 am
(click to enlarge)
Following range-bound trading during November, light sweet oil for February 2014 delivery broke through the 95.60 level during a powerful upmove on December 3-4.
The momentum from that move led to a 1 ½ month high at 98.74, where it found resistance. 98.74 is the target any rally continuation would like to retest.
The subsequent pullback led to the formation of a low at 96.25, from which there was a rebound. Indeed between the 96.25 and 95.60 (the November high) levels, lies a possible support area.
The next support area would be the 5-month low of 91.75, registered at the end of November.
Current price action is somewhat above the short-term 21-period exponential moving average, which is bullish. The 14-day RSI (Relative Strength Index) is close to neutral at 53.
To sum up, the chart appears bullish and a possible break above the 98.74 level could lead to a retest of the year’s high at 104.60 (closing) – 106.20 (day’s high) levels. If the resistance level does hold and oil is pushed back down, there will be continuation of the general range-trading behavior of oil that has been in during the last 3 years.
(click to enlarge)
Following range-bound trading during November, light sweet oil for February 2014 delivery broke through the 95.60 level during a powerful upmove on December 3-4.
The momentum from that move led to a 1 ½ month high at 98.74, where it found resistance. 98.74 is the target any rally continuation would like to retest.
The subsequent pullback led to the formation of a low at 96.25, from which there was a rebound. Indeed between the 96.25 and 95.60 (the November high) levels, lies a possible support area.
The next support area would be the 5-month low of 91.75, registered at the end of November.
Current price action is somewhat above the short-term 21-period exponential moving average, which is bullish. The 14-day RSI (Relative Strength Index) is close to neutral at 53.
To sum up, the chart appears bullish and a possible break above the 98.74 level could lead to a retest of the year’s high at 104.60 (closing) – 106.20 (day’s high) levels. If the resistance level does hold and oil is pushed back down, there will be continuation of the general range-trading behavior of oil that has been in during the last 3 years.
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