WTI with "buy" opportunities after a strong support test

WTI

Time frame: H4

Technical analysis: Since the beginning of the year we have seen an exceptionally strong upward trend in oil. On the chart we can see that the oil made two higher highs, forming a divergence at the 2nd high. After forming the divergence, oil fell, as it is currently close to strong diagonal support (the blue trend line), with a 61.8% Fibonacci resistance projected from the top to the bottom of last year's downward movement and 23.6% on Fibonacci designed at $ 54.55 to the current high. Since the fundamental behind oil is positive, and the above-mentioned support is extremely strong, it is more likely that the price will turn and continue again in the upward direction.

Indicators: Currently, the 50-year EMA plays a role of resistance, while 200 EMA are supported.

DeM and RSI are entering an over-sold market, which is positive for the "buy" scenario.

Entry into Deal: Only after a diagonal support test (the blue trend line).

SL: 62.90

Alternative Scenario: If the price can break through the above-mentioned support, then it will continue to fall to the next strong support level of about 38.2% on Fibonacci.

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