Oil Technical Update

 

Previous: WTI Breaks Below Wedge Pattern; Swing Projection Targets 88 (5/28)

WTI Crude Oil 4H 10:55AM EDT 5/30/2012

WTI

In the previous update, we saw a break from consolidation in the 4H WTI Crude Oil cart. Well, there was a shakeout, or another leg up to 92.20, before the breakout occurred. Oil price is now breaking below 88.00 in the 5/30 US trading session. This completes the swing projection target, maintaining the bearish momentum and suggests yet further downside.

The daily chart below shows that key support can be found near 75.00, 75.60 area, so the downside risk is down there. Before that, we may have a pivot and 78.6% retracement in the 82.50-82.60 area.

WTI Crude Oil 4H 11:05AM EDT 5/30/2012

WTI

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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.