WTI Oil: 1W Resistance ahead. Strong pull-back potential.

Oil is extending its very aggressive uptrend on the 1W chart since it nearly tested the 42.00 Support last December. 1W is a healthy uptrend (RSI = 61.910, Highs/Lows = 6.6357) while 1M is on the verge of breaking out (RSI = 54.404, MACD = 1.350) pointing a long term target zone within 72.50 - 75.00. However we are getting close to the 66.65 1W Resistance, which on January 2018 rejected a similar bullish sequence by nearly -13%. Attention is needed as we may have a similar development with the pull back aiming as low as 58.15. Oil remains on a strong long term uptrend so investors should aim at buying such pull backs rather than shorting them.

It may be a good time to look at our very long term perspective on Oil on the study made last November calling for sideways action within $50 - $73 for the next three years. Of course now the Rectangle's support needs to be restructured lower at $42.00 - 45.00.






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