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WTI crude: outlook remains negative – DayTradeIdeas

FXStreet (Barcelona) - Jason Sen of DayTradeIdeas gives the technical outlook for WTI Crude May contract, noting that failure to break above 5130/5140 would target 5060/5050 and then 4970/4950.

Key Quotes

“WTI Crude first resistance at 5130/5140 is key to direction but the outlook remains negative and failure to beat this level keeps the market under pressure to re-target 5060/5050. This is also three week trendline support & therefore the most important support of the day.”

“However a break lower looks more likely today so be ready as this would target the 4970/4950 area.”

“If this does not hold the downside we risk further sharp losses to target good support at 4860/50. A good chance of a low for the day but longs need stops below 4810.”

“Above 5150 opens the door to a test of two month trendline resistance at 5180/90. Try shorts with stops above yesterday's high of 5207.”

“A break higher however could target resistance at 5245/5255. If this does not hold a move higher we can target 5330/5340 for a selling opportunity with stops above 5370.”

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