The WTI swing. The price has accelerated upwards over the last month on the rumors of an agreement by the OPEC countries. They will continue to keep production down. Bringing them close to the resistance set at around $ 61 per barrel. From here he suffered a retracement of 4 dollars in three sessions returning to the support area at 57 dollars.
Technically, both on a daily time frame and on a weekly one, crude oil seems to be heading towards a further drop. As it has met the four major resistance. The static one identified by the 23.6% Fibonacci retracement and the dynamic ones from the EMA200s. Both daily, weekly and monthly, which have proved to be difficult barriers to break on the upside. These resistances are all concentrated in the same area, that is between 60 and 61 dollars per barrel. On daily and weekly tf, the price also violated the dynamic support reported by the EMA20 periods. All these technical events lead to think that the descent is not over and that therefore the WTI can move to zone 56 first. If it broke down this static support, it could return to the 54/52 $ area.
The same technical scenario is taking shape for the BRENT. At the moment the price is on the static support set at $ 64.
Because of the WTI swing we recommend a short entry on WTI with the first target on 56 dollars; second at 54 and final target at 52.