Tag Archives: WTI

United States Oil Fund ETF (USO) weekly chart

A break below major support of 29 for USO
A break below major support of 29 for U.S. Oil Fund  (USO)

USO 3-Year Chart

USO ETF is a proxy for West Texas Intermediate.

Reference the last chart analysis for USO.

______________________________

“Keep it Simple!”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

WTI candlestick chart

Intermediate downtrend for WTI and a major break below 80
Chart for West Texas Intermediate showing the intermediate downtrend and the major break below support of 80.  There is  a tentative support level on the weekly chart at  77.50.

WTI Daily Chart

Chart for West Texas Intermediate showing the intermediate downtrend and the major break below support of 80. There is a tentative support level on the weekly chart around 77.50.

Reference the last chart analysis for WTI published on October 17, 2014.

October 17, 2014: Daily candlestick chart for WTI showing the support level around 80. There was heavy volume on Thursday as the shorts covered. But the spinning top candlestick on Friday indicates ambivalence. It is not the time to go long or short. We will have to monitor future price action. There is a high probability the bears will take another run at testing the support level.

______________________________

View from the weekly chart
Weekly chart for WTI

WTI 3-Year Weekly Chart

______________________________

“It is all about probabilities”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

West Texas Intermediate (WTI) candlestick chart

Hammer on weekly chart indicates tentative support at 80
Hammer on the weekly chart for WTI indicates support around 80 as the shorts covered on Thursday. It is not a perfect hammer which would have a smaller real body and a longer shadow.

WTI 3-Year Weekly Chart

The shorts covered. Hammer on the weekly chart for WTI indicates support around 80. It is not a perfect hammer which would have a smaller real body and a longer shadow. There was also the support at 80 back in June, 2012.

______________________________

Daily chart for WTI shows the support level around 80
Daily candlestick chart for WTI showing the support level around 80.  There was heavy volume on Thursday as the shorts covered.  But the spinning top candlestick on Friday indicates ambivalence.  It is not the time to go long or short. We will have to monitor the price action next week.

WTI Daily Candlestick Chart

Daily candlestick chart for WTI showing the support level around 80. There was heavy volume on Thursday as the shorts covered. But the spinning top candlestick on Friday indicates ambivalence. It is not the time to go long or short. We will have to monitor future price action. There is a high probability the bears will take another run at testing the support level.

Reference the last chart analysis for WTI and Brent published on October 14, 2014.

Reference the Monthly Oil Market Report from OPEC.

Expectations for next month’s Opec ministerial meeting now weigh heavily on the oil market after the sharpest sell-off in years over the past month, analysts said. Read the rest of the article………….

Excellent article from a Canadian perspective: In the oil sands, this is not the time to panic

______________________________

“It is all about probabilities”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

WTI and Brent 3-year weekly line chart

Brent down 26% from June! WTI will test 80 and Brent 83?

Intermediate downtrend for WTI and Brent.

WTI and Brent 3-year Weekly Chart

Reference the last chart analysis for WTI and Brent published on Oct 8, 2014.

Reference my chart analysis published February 5, 2013 for historical numbers.

______________________________

“Keep it Simple!”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

West Texas Intermediate (WTI) weekly chart

Intermediate downtrend for WTI and Brent

WTI and Brent 3-Year weekly chart showing the differential and support levels.

WTI and Brent 3-Year Weekly Chart

For historical data and commentary, reference my chart analysis for WTI and Brent published February 5, 2013.

______________________________

“Keep it Simple!”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

WTI candlestick chart

WTI testing major support of 92.50

WTI testing major support of 92.50

WTI 3-Year Weekly Chart

Link to my last chart analysis for WTI: Reference the last chart analysis for WTI.

Barron’s artice: Expect Dollar to Rise, Gold and Oil to Fall

______________________________

“Keep it Simple!”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

WTI/ Brent chart (2011-2014)

Chart is the ratio of WTI/Brent

Chart showing the ratio of  West Texas Intermediate to Brent

Reference the same chart from last year.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

West Texas Intermediate (WTI) area chart

Intermediate uptrend for WTI with resistance at $97.50 – $98.00 zone
Two year chart for West Texas Intermediate (WTI) crude showing the intermediate uptrend and resistance levels.

WTI 2-Year Weekly Area Chart courtesy of StockCharts.com

The above two-year weekly area chart (shaded area) for West Texas Intermediate crude shows the near-term and intermediate uptrend. The major trend is down. WTI is trading above the 50-day (blue line) and the 200-day (red line) simple moving averages and the 50-day has crossed above (golden cross) the 200-day moving average. The current resistance level is the $97.50 to $98.00 price zone.  This is the near-term price at which traders take profits. If WTI can breakout above $98.00, the major resistance zone will be the September, 2012 close of $99.01. And the even number of $100 around the intraday high of $100.42 would also be a major resistance level.

Brent crude is the  the world standard (Europe and Asia) for crude oil pricing and West Texas Intermediate is trading at a discount relative to Brent pricing. I have charted the differential in a previous post.  One could argue that WTI is trading in a sweet spot providing a reasonable profit for U.S. based oil companies while not a threat to increased inflation.  It is a different situation for Canada where Western Canadian Select is trading at a $30.00 (rounded) discount to WTI which in turn is trading at a discount of $20.00 to Brent.  There is no need to shed any tears for big Canadian oil companies like Suncor which are still generating positive cash flow at current pricing levels.  But, from an investment perspective; world class oil companies in the U.S. and other countries will attract the investment dollars.  An investment in Canadian oil companies is “dead” money for the intermediate term.  Pipelines cannot be constructed overnight to transport crude. And, then there is the depressed price for North American natural gas.  LNG terminals are expensive and controversial.

There are a number of factors that affect the price of West Texas Intermediate:

  1. Supply and demand balance
  2. U.S. Dollar — WTI normally has an inverse correlation to the value of the U.S. dollar
  3. Supply  — there is currently a glut of oil at the  Cushing, Okla caused in part by pipeline constraints
  4. Supply — surging production out of the Bakken fields in North Dakota and Saskatchewan
  5. Supply — hydraulic fracturing is increasing production
  6. Supply — geopolitical risk associated mostly with the Middle East — one known-known is Iran
  7. Demand — tepid U.S. GDP growth in the the 2% range
  8. Demand — single digit GDP growth of  7% to 8% for China

Reference the last chart analysis for WTI highlighting the price differential versus Brent.

Relevant articles picked from the Web:

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca