WTI
Time frame: H4
Technical Analysis: Following the strong rise in oil, its price hit the resistance of the newly emerging short-term upward trend. In support of the "sell" scenario, the RSI and DeM indicators are coming. Currently they are in over-sold values, indicating the formation of divergence. On the chart we can see that the price has formed a figure "Flag". Since this figure is trend continuing, it is good to wait for a breakthrough and then to position ourselves in a deal in the direction of movement.
Fundamental: EIA Crude Oil Stocks Change (Feb 15) will be published at 18:00 (GMT +2)
Expectations are that the new oil reserves will be 3.100M barrels, which is negative for the price and supports the "sell" scenario.
Indicators: RSI - Over-sold values and formed divergence.
DeM - Over-sold values and formed divergence.
The price is over 50 and 200 EMA, and for the moment the moving averages play a supporting role of the price.
Entry: Sell only after downward break of figure "Flag"
SL: 58.30
Alternative Scenario: Upward break of the Flag figure will boost the price to new highs.
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