FxWirePro: More bullish potential leftover in WTI’s run-away gap – Stay long in near-month futures as momentum biased on bullswings

We’ve already emphasized bullish gap formations in our previous technical write up.

You see the break-away gap occurred at 46.27 and bulls bounced from the lows of 44.86 with intensified bullish momentum.

Thereafter, the runaway gap is occurred at 53.13 levels, at that juncture, although the momentum seemed to be reducing but the rallies have prolonged.

Last six weeks, the WTI bulls’ attempts of bounce back amid minor hic-ups are well supported by the momentum indicators in the consolidation phase of this energy price.

The current prices are well DMAs, for now, the break above 51.36 levels evidences bullish environment with a gap up patterns to substantiate this bullish stance, but the upswings are struggling to break resistance of 54 levels, but all chances of the trend to head towards $55 levels are quite visible again with the minor hic-ups.

RSI evidences the upward convergence to the price spikes. While stochastic curves have been indecisive but bullish bias.

To substantiate this bullish stance, weekly MACD signals upswings to extend further.

On weekly plotting, we’ve observed bullish DMA crossover to signal the extension of the uptrend.

Hence, we don’t encourage long-term short build ups hereafter; instead, we encourage longs in WTI crude of near-month expiries for targets of 54.48 levels with strict stop loss of 52.27 levels, thereby, the trade carries attractive risk reward ratio.

The long futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a rise in the price of the underlying.

The long futures position is also used when a manufacturer wishes to lock in the price of a raw material that he will require sometime in the future.