The following remark was made in the previous post on the daily bar chart pattern ofWTI Crude oil: "Even if oil's price crosses above its 200 day EMA, the strong resistance zone between 42-44 will be more difficult to overcome."
Oil's price did cross above its 200 day EMA on Apr 12, but wasn't supported by strong volumes. The next day it attempted to test resistance from the 44 level but fell short, and formed a 'reversal day' bar (higher high, lower close).
After plunging below its 200 day and 20 day EMAs, oil's price bounced up sharply and once again crossed above its 200 day EMA - this time backed by strong volumes that provided technical validity to the move into bull territory above its three EMAs.
-- Oil's price did cross above its 200 day EMA on Apr 12, but wasn't supported by strong volumes. The next day it attempted to test resistance from the 44 level but fell short, and formed a 'reversal day' bar (higher high, lower close).
After plunging below its 200 day and 20 day EMAs, oil's price bounced up sharply and once again crossed above its 200 day EMA - this time backed by strong volumes that provided technical validity to the move into bull territory above its three EMAs.
Read more at:
http://investmentsfordummieslikeme.blogspot.in/2016/04/wti-and-brent-crude-oil-charts-update.html
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