Crude Oil WTI is in an uptrend but nears major resistance at USD 106.75, where Investing.com's technical analysis flags a potential double top. The analysis lists bullish momentum signals alongside weak trend strength, and names a sharp pullback as the primary risk.
WTI faces overhead resistance near previous highs
Crude Oil WTI is in an established uptrend but faces significant overhead resistance near previous swing highs, according to Investing.com's technical analysis. The primary risk is a double top formation or momentum exhaustion leading to a sharp mean-reversion pullback.
A potential double top at USD 106.75 is 70% complete. The analysis also marks major resistance at 103.92-106.75, where it sees a high probability of seller defense.
Bulls hold support, bears cite fading strength
Bulls point to several signals. SuperTrend is bullish at 98.48. Price sits above the Ichimoku cloud of 91.13-97.50. MACD is also bullish at 1.25 against 1.20.
Bears, however, note that ADX at 20.49 signals weak or fading trend strength. They add that MFI at 77.00 is approaching overbought territory.
Key levels between USD 94.33 and USD 106.75
Fibonacci retracements drawn from 74.24 to 106.75 put the 23.6% level at USD 99.08 and the 38.2% level at USD 94.33. Separately, the analysis outlines a long zone at USD 98.50-100.30 and a short zone at USD 103.50-106.75.
It labels USD 100.30-103.50 a no-trade chop zone. It lists the bull invalidation at 98.48 and the bear invalidation at 106.75. Its dashboard also carries a preservation alert for a bull trap at USD 104.00.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
