WTI – the small pennant & the big wedge

On Aug 7, I posted a WTI chart on StockTwits – basically a bullish pennant based on which my expectation was for a continuation of the current run up. However, I do not expect WTI to run beyond 52/53 for now as the LT outlook continues to be bearish both on fundamentals and technicals.

In today’s chart, I have attempted to “size up” the potential trend zones as I thought this would help us to some extent, going forward. Here, my goal was to present a larger picture. The focus is not on that small bullish pennant, but on the larger wedge and a medium to long term outlook.

As I have been saying for over 3 weeks now (from 47 levels), Venezuela will continue to be a risk, if you are an Oil bear. So one needs to “bear” that in mind, no pun intended.

Needless to say, my opinions are just opinions. So if you are using these forecasts as a basis for your trading, make sure you follow the stop levels I keep posting on StockTwits. Happy trading!

New chart:

WTI Aug 8

Yesterday’s chart:

WTI UPDATE Aug 7

About Venkat Pulakkad

Entrepreneur, management consultant, blogger & forecaster. Founder of Flourish Research Media that provides insights on markets, trading strategies & risk management. Currently an active trader with 20+ years of experience trading Forex, Stocks & Options. Areas of interest: Trend / Swing trading, Macro-tech analysis, building trading strategies, deploying Risk Management techniques, and helping / coaching traders to become successful traders. Twitter link: https://twitter.com/Flourish_Venkat      
This entry was posted in Oil, Uncategorized and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s