Hi Guys, today we're looking at WTI crude oil or CL1 on the monthly chart and right off the bat it is looking like a reversal is very close. We can see many technical indicators that point to this. As you can see firstly illustrated by the yellow circles on our chart that the $40 area has long term support going as far back as 1990 even.
Price action is supported by the 200SMA on the 2 month chart (400 SMA on the 1 month)a very significant area of support. Can it go lower? Yes, perhaps even to 40 area. On the fib chart we can see the price point has fallen past the .618 extension but I suspect that on the one month chart this will appear as a shadow candle which would mean a sharp rebound over the remaining week of 2018. Also look at the rising MACD which is very similar to the structure that formed right around July 2011.
Price action is supported by the 200SMA on the 2 month chart (400 SMA on the 1 month)a very significant area of support. Can it go lower? Yes, perhaps even to 40 area. On the fib chart we can see the price point has fallen past the .618 extension but I suspect that on the one month chart this will appear as a shadow candle which would mean a sharp rebound over the remaining week of 2018. Also look at the rising MACD which is very similar to the structure that formed right around July 2011.