Do the Crude Charts Match the News?

It’s hard to ignore all of the talk and articles about oil having a $100 target. That’s a significantly higher amount from where it trades now at roughly $72. The daily and weekly charts are filled with information. They can help guide in where resistance may be along with way as well as give other indications. A breakdown of the daily and weekly charts are below.

Daily Chart (as of 9/25/18)

-Price above Bollinger Band

-“Indecisive” candlestick after a 6.5% move in 5 days (low to high)

-Recent high is at resistance from May

-CCI and Slow Stochastics Oscillators in overbought territory

-RSI near overbought and at a high level overall

-Slow stochastics shows divergence – lower oscillator peaks with higher price peaks

-RSI and CCI have followed price – higher oscillator highs with higher prices

—These last 2 items are conflict with each other.

Weekly Chart

-Resistance level from 2011 & 2012 was recently touched and price retraced

-The 61.8% Fibonacci retracement level from the 2014-2016 move matches the above resistance line

-Volume has been decreasing on the move higher

-Oscillator divergence – Lower highs when price has been making higher highs

In summary, the daily chart has some conflicting items but shows the resistance line near $73. If this breaks and stays above, it’s time to revisit the charts for the next higher price targets. However when referring to the weekly chart, bearish signals are present.