WTI bullish medium term (as long as $49.10 holds) – Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the barrel of WTI keeps the bullish stance in the medium term, as long as prices stay above $49.10.
“Nymex Light Crude Oil has risen to its November high at 58.98 around which it may soon top out”.
“A drop below the November 29 low at 56.75 on a daily chart closing basis would be the first step in such a top being formed”.
“The negative divergence on the daily RSI which accompanied the recent highs points to such a trend reversal soon being seen with the 54.88 mid-November low, the four month support line at 54.25 and the 55 day moving average at 53.66 representing possible downside targets. The fact that the 200 week moving average at 57.97 caps as well adds to our toppish view”.
“We will retain our medium term bullish forecast while no drop below the October low at 49.10 occurs”.
“Above the 58.98 level lies the psychological 60.00 mark. Further up sits the May 2015 high at 62.58”.