This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
The weekly chart of WTI oil shows the significant resistance level of $52 still in play. The overall picture is bullish, with a significant reversal pattern in play starting from July – August 2015 and an inverse head and shoulder has developed. The right side of the chart has become complex, with an ascending pattern showing three significant swing lows. This type of pattern becomes important when three lows (shown on the chart) are not broken to the downside. Overall, this is a bullish setup.
The outside range set (3) has marked the low at short-term support, which is a very bullish sign.