WTI Oil Outlook: Bulls Are Taking A Breather Under New 7-Year High

Technical analysis of Forex market

The WTI oil is consolidating under new seven-year high, as bulls slowed on cooling demand over easing gas and coal prices and a forecast for mild winter in the US but is on track for the seventh consecutive bullish weekly close. Dips off new high were so far shallow and contained by rising 10DMA, with long tails of daily candles of past three days, suggesting that demand is still strong and the downside so far remains protected.

Unexpected draw in US stocks this week, also supported the action.

Daily studies remain in full bullish setup but stochastic and momentum started to point lower, suggesting extended consolidation as bulls repeatedly failed to break above larger bull-channel, with stronger correction seen not likely unless global energy crisis recedes.

Ascending 10DMA ($81.52) tracks the action for past six weeks and marks solid support which should ideally contain dips and keep intact pivotal supports at $80 (psychological) and $79.01 (rising 20DMA).

Res: 83.91, 85.24, 85.90, 88.61.
Sup: 82.59, 81.52, 80.76, 80.00.