Technical Analysis of WTI Crude Oil Prices: A Closer Look

EnclaveFX Ltd
Aug 08, 2023

WTI crude oil prices have followed the script of Monday's bearish Doji candlestick pattern, substantiating the recent downturn. Yet, the technical landscape presents intriguing aspects that demand closer scrutiny.

Drawing attention to the chart, a convergence is evident between the 10-day Moving Average (10-DMA) and a rising support line that has been in play for six weeks. This notable intersection occurs around the $80.90 mark, and it could pose a significant challenge for the oil bears attempting to drive prices lower.

The presence of the 10-DMA, a moving average that tracks price trends over the past 10 days, adds an element of potential support. Paired with the established rising support line, it forms a compelling defense against further downward movement. This juncture holds particular significance as it acts as a convergence point between short-term trend dynamics and established support.

While the bearish Doji candlestick pattern set the stage for recent losses, this convergence zone could act as a catalyst for a potential shift in the price trajectory. It's crucial to monitor whether the convergence will indeed serve as a battleground between the bulls and bears.

As traders navigate this technical landscape, the interplay between short-term indicators and longer-standing support structures becomes paramount. The combination of these factors can significantly influence market sentiment and the subsequent price movements of WTI crude oil.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell these assets. You should do your own thorough research before making any investment decisions. EnclaveFX Ltd does not in any way guarantee that this information is free of mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in the Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses, and costs associated with investing, including the total loss of principal, are your responsibility.

EnclaveFX Ltd and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. EnclaveFX Ltd and the author will not be liable for any errors, omissions, or any losses, injuries, or damages arising from this information and its display or use. The company is not responsible for errors or omissions.