Oil loses momentum for the week, uptrend remains intact
Weekly Chart
FXCM's Brent CFD, UKOil, and its WTI CFD, USOil, have charted a higher trough followed by a higher peak. This is an uptrend. However, this week has seen decline.
UKOil has dropped near 4.9% and USOil by 4.6% for the week (candles are still to complete).
The weekly stochastic has flattened (blue arrows). This suggests a waning momentum.
Current price action may chart the next higher trough (HT?) in the series. However, for this to happen, the stochastic will need to head up towards the 80+ levels. Improvement in Chinese data will provide tailwind here.
A decline by the stochastic back into the 20- regions will probably take price below the previous higher trough (HT). This will cancel the uptrend.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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