FxWirePro: WTI crude breaks major resistance and hits 3Y highs, bulls on verge of retracing 50% Fibos, minor trend forms whipsaws – Uphold long hedges

Chart pattern formed- Breach of rising wedge resistance on daily plotting, Symmetric triangle resistance break-out and extension of consolidation phase by retracing more than 38.2% Fibonacci retracements, the uptrend is now on the verge of retracing upto 50% on monthly terms.

In this process of the bull run, WTI crude prices have hit 3 years highs, Doji has occurred exactly at wedge resistance of $61.88 levels to counter these rallies. But bulls have shrugged off these bearish indications and managed break-out decisively with the stern bull candle with the big real body.

For today, the rallies are dragging further to new the highs of $64.05 levels, both leading as well as lagging indicators are substantiating these buying indications.

But on the contrary, let’s have a glance through the major trend that was bearish now has gone into consolidation phase that was jerky way back in mid-2015.  From massive slumps from the peaks of $114 levels shouldn’t be disregarded and jumping to conclude this as a robust uptrend would be unwise, it is just 38.2% retracements.

Having mentioned that, we aren’t a pessimist, for now, more rallies on cards upto another major resistance at $70.18upon bullish EMA crossover.

Major supports are observed at $62.54 levels.

While both leading oscillators have been converging upwards but indecisive currently.

The sustenance above DMAs with bullish MACD crossover indicate more rallies that head for next resistance.

Trade tips: We’ve already advocated adding longs using futures contracts of near-month tenors with a view to arresting upside risks, we reiterate that it is wise to use dips to deploy long hedges using these WTI derivative contracts.