A loss in momentum brought exhaustion in the upside move.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• A loss in momentum brought exhaustion in the upside move.
• Divergence in asset price and momentum oscillator has accelerated the odds of a bearish reversal.
• A bear cross, represented by the 20-and 50-period (EMAs) adds to the downside filters.

The pair currently trades last at 93.34.

The previous day high was 95.61 while the previous day low was 92.19. The daily 38.2% Fib levels comes at 93.49, expected to provide resistance. Similarly, the daily 61.8% fib level is at 94.3, expected to provide resistance.

West Texas Intermediate (WTI), futures on NYMEX, has displayed a short-lived pullback after printing a three-day low of $92.16 in the Asian session. The asset is advancing higher right from the first tick on Friday, however, the downside pressure remains favored as the asset has displayed exhaustion signals after a juggernaut rally.

The sheer upside rally from the past week has met exhaustion and a correction mode is undergoing. On an hourly scale, the asset consecutively formed higher highs but with a decline in buying interest, however, the momentum oscillator, Relative Strength Index (RSI) (14) formed lower highs. This advocates a loss of upside momentum as investors are treating the asset as an expensive bet.

A bear cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at $93.73, bolsters the case of a steep correction ahead.

Should the asset drops below the round-level support at $92.00, bears will get strengthen further and will drag the asset towards the August 22 high at $90.98, followed by August 17 high at $88.65.

Alternatively, bulls could regain control if the asset oversteps August 24 high at $95.10. An occurrence of the same will send the asset towards July 26 high at $98.4 and the psychological resistance at $100.00.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 93.34 at the time of writing. Pair opened at 92.89 and is trading with a change of 0.48 % .

The pair is trading above its 20 Daily moving average @ 90.97, below its 50 Daily moving average @ 97.07 , below its 100 Daily moving average @ 102.67 and below its 200 Daily moving average @ 94.91

The previous day high was 95.61 while the previous day low was 92.19. The daily 38.2% Fib levels comes at 93.49, expected to provide resistance. Similarly, the daily 61.8% fib level is at 94.3, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 91.52, 90.14, 88.1
• Pivot resistance is noted at 94.94, 96.98, 98.36

[/s2If]
Join Our Telegram Group