When we look at the movement in the price of oil on the monthly, weekly and daily charts we don’t need to know what the news about oil is. If you’re knowledgeable about technical analysis, it’s not necessary to analyze and interpret events in the market — all we’re doing is identifying the trend and making sure we know where previous strong buying or selling kicked in: the support and resistance levels. Our read on the oil market is only about price, where it’s going and where it’s been.
Here’s the monthly chart so you can see the context for the new 2-year high that just hit:
WTI oil chart, monthly.
The price of oil remains below the downtrend line established by connecting the 2008 high with the 2013 and 2014 highs. In other words, it’s been higher priced. A close above that red dotted downtrend line might indicate a trend reversal, but we’re not there yet. Oil has a long way to go before taking out that high of 150 a barrel in 2008. The peek above the Ichimoku cloud is a bullish technical indicator.
Here’s how it looks on the weekly chart:
WTI oil chart, weekly.
Oil has been trending steadily upward for more than 2 years now. It’s managed to stay above the trend line that connects the early 2016 low with the mid-2017 dip. Price remains above the Ichimoku cloud as well. At about 75 per barrel we’re halfway to the old 150 peak.
Here’s the daily chart: