We highlighted previously that April tends to be the most bullish month for WTI and, having gained 7.3% this month already, is on track to retain its seasonal tendency.
The daily trend structure remains firmly bullish with minor pullbacks and timely cycles. Furthermore, the 8, 21 and 50 eMA’s are fanning whilst prices bob their way along the 8-eMA to underscore the strength of the overall trend. Whilst prices have found resistance around the August lows, this comes as no major surprise given they’re structural levels. However, yesterday’s bullish engulfing candle suggests WTI may try to break to new cycle highs in due course.
A break above $65 would confirm a bull-flag on the daily chart and assume a run towards the $67.88 high. If it holds above $63 prior to a breakout, it serves as another testament to the trend’s strength, yet it wouldn’t be the end of the world if we saw a deeper retracement towards the $61.80 area first. Either way, we’re watching closely for a break above $65 to bring the $67.88 high into focus.