FxWirepro: WTI crude price spikes unlikely to sustain - bearish trend remains intact

Technical Watch:

Dear readers, we've been consistently bearish and been advocating suitable trading calls when the commodity was around 60 levels and you've seen the effects, we would see prevailing price spikes as just a short term price recoveries for bulls. We look at these spikes as a good entry levels and this commodity still remains a sell in our list.

For now, monthly technicals still suggest sell indications as the RSI signaling convergence with the dropping prices (currently RSI is trending at 27.5531). During European sessions we also observe rising prices with declining volumes. But compare the monthly prices with volumes then you can have a clear bearish scene as there is positive correlation.

While %D crossover sustains below 20 levels on slow stochastic (currently %D line at 12.2688 & %K line at 2.4879), so overall we don't see any sort of strength in this commodity that can pull back from current levels. Prevailing prices are well below moving averages both on daily and monthly charts as well. Hence, we conclude this week's opinion on crude as still a weaker commodity.