WTI crude finally caught up with the rest of commodities. It is moving higher both in the short and longer term basis. Price is above both it short term and longer term moving averages (chart 1 and 3). Also, the recent breakout looks clean as WTI price in MYR also above strong resistance of 280.
In fact, the uptrend has picked up momentum as it is trading above top channel, which cap price in almost one year (chart 2) and the breakout broke long term weekly RSI resistance of 65, which been in place for more than 2 years. The break of such strong support should be accompanied by similarly strong follow through.
The first target is now 110, which is the top channel on the weekly chart (chart 3), and every multiple of 10 likely see further selling. Meanwhile, the psychological 100 and then the gap of 95 should become a support now and a strong uptrend should not see this level violated.
Given that price has been on an uptrend for about 2 years, the acceleration of price is more likely to be real rather than a blip, or supply shock, due to the problem in the Middle East. The breakout was a move along with the trend, not against it, and so should see price trending in that direction for some time. That probably mean that the problem in Middle East is still long way from a solution or there probably be some other subtle reason that supports current uptrend, unknown at the moment.
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