prices in difficulty on trendline and SMA 200

WTI oil, daily chart. Source: Bloomberg

For over a month, in fact, the black gold continues to move between the trend line that unites the lows of 10 and 21 October 2019, and that obtained by linking the tops of 7 and 24 October last.

After some time spent in this figure, prices are struggling to reach its top. This is caused by the significant resistance transiting to between 57.36 and 58 dollars per barrel: in fact, in this area pass trendline drawn with the maximums of 3 October 2018 and 23 April 2019, and the 200 day simple moving average.

These obstacles have allowed sellers to create a resistance bulwark, highlighted by the static level inherited from the top of November 6, 2019.

Only with a closing of more than 58 dollars per barrel could the courses be able to return to the test of the psychological threshold at 60 euros.

On the contrary, a potentially bearish signal would occur if the quotations returned below yesterday's lows, at 56.55 dollars. In this case, a breakout attempt of the ascending channel.

Operational strategies on WTI oil

Given the findings of technical analysis, you might consider the nature of short strategies in case of return below $ 56.55. The stop loss would be detectable at $ 58.10, while the main goal to $ 54.90. The most ambitious target is instead located at $ 54.

For this type of operation, it fits the Turbo Short certificate of BNP Paribas ISIN NL0013883465 and lever 4.57