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22 Feb 2016
WTI: Probable double bottom – SocGen
Research Team at Societe Generale, suggests that WTI is likely to form a hammer and closing price of this month should be watched.
Key Quotes
“It has tested the lower limit of a massive descending channel (line chart) at 26.00/25.00 which will remain a key support.
Dropping down to daily chart of April’16 expiry, WTI is evolving within a probable double bottom at 28.70. Confirmation level for the pattern is at 35/36 which also corresponds with the 61.8% retracement since January highs.
Daily RSI has been diverging positively which indicates possibility of continuation in recovery. A break above 35/36 will spark increased positive signals and take WTI towards 39 with possibility to reach 42/43, projected potential of the pattern.”
Key Quotes
“It has tested the lower limit of a massive descending channel (line chart) at 26.00/25.00 which will remain a key support.
Dropping down to daily chart of April’16 expiry, WTI is evolving within a probable double bottom at 28.70. Confirmation level for the pattern is at 35/36 which also corresponds with the 61.8% retracement since January highs.
Daily RSI has been diverging positively which indicates possibility of continuation in recovery. A break above 35/36 will spark increased positive signals and take WTI towards 39 with possibility to reach 42/43, projected potential of the pattern.”