FxWirePro: WTI hammer resumes momentary rallies despite bearish SMA crossover, bulls break-out triangle resistance – Stay long hedged as more rallies on cards

Chart pattern formed- Symmetric triangle resistance break-out and hammer pattern candlestick.

Major supports are observed at $56.77, and bulls have managed to test this major supports before bouncing back.

While major resistance is seen at $57.90 and $60.10 levels.

There has been a tight tug of war between bulls and bears, it is now attempting to head towards strong supports, while both leading oscillators have been indecisive currently and shown strength at 37 levels.

WTI crude prices have shown a fake jump above SMAs upto the stiff resistance of 57.90 levels and once again declined sharply from that level upon struggling bullish momentum.

While on a broader perspective, bulls in the consolidation phase break symmetric triangle resistance, but one more stiff resistance at 60.10 is closely watched and the sustenance above EMAs will more likely to break out these level upon bullish crossover.

Both leading as well as lagging indicators to converge these bullish sentiments.

Trade tips:

It is wise to use dips to deploy long hedges using forward contracts, we advocate adding longs in mid-month futures with a view to arresting upside risks.