Oil WTI monthly 02.16.2021

Oil price forecast 2021 trend in the short and medium term

Oil forecast 2021 trend of the price dynamics from the short to the long term through the technique of the economist W.D. Gann.

Oil today: weekly technical graphic

Oil forecasts in the short term

After the week of 24^th April in which we have assisted to the zeroing of the oil quotations, the price dynamics has had an incredible positive return, at least four times its natural trend.

It can be noticed on the photo how the bullish trend has followed a growth angle above the 4X1 vector, radiated in purple.

Only at the end of June, contemporarily with the 1X1 descending vector, in red, the Oil dynamics has started to follow a positive lateral path.

At the expiry of the temporal cycle of 28 August – 04 September, the Oil trend has started to be affected by the first short term changes.

In fact, after a first correction which has brought the quotations on the 2X1 vector radiated by the software in yellow, the WTI trend has started to alternate in a lateral band of prices between $41,40  and $36,60.

The following weekly Set Up, expired between October, 30 and November, 6 has bring to the top of the Oil correction at level $33,66, a light level considering the expectation for the formation of a large accumulative zone.

In fact, the temporal cycles of 06-13 November have surprisingly indicated a new change of pace.

From the week of November 6, 2020 until today, the positive trend has not only record a return two times the normal amount (2X1 vector in yellow), but there wasn’t any weekly negative infringement.

That is every weekly low is remained intact for good 14 weeks until today!

This dynamics has been realized also in presence of important angular resistance as the 1X4 descending vectors colored in purple in the photo just above.

The dynamic obstacles have not slowed down at all the positive returns, but they have just lateralized the trend in the weeks of December 25 and January 22, 2021.

The last weekly Set Up is expired on 26^th January which has furtherly accelerated the positive phase of Oil while the following Set Up will expire in the week of February 26, 2021.

In the slide just above are highlighted the last short term obstacles, the 1X8 descending angles, blue colored, at level $63.24 and the static resistances at level $64.

Oil price medium term forecast

The positive recovery of Oil is also more surprising considering the monthly timeframe.

From May the returns has been good eight times their natural trend (the 1X1 ascending vector red colored), in fact the positive candles have closed well above the purple vector radiated by the low of April 2020.

The monthly Set Ups of September 2020 and December 2020 has been the most important cycles of the year.

In fact in September, we have assisted to the first correction of the Oil price dynamics and in November to the infraction of the top of September.

This signal indicates an important change in the medium term trend and has been confirmed in December by a further bullish break.

Also in this case, the 1X2 descending dynamic resistances radiated in yellow, which in previous occasions have slowed down the propulsive force of the trend, seem to be broken upwards.

It is not possible to say now, we should wait until the end of February 2021.

February is also a monthly Set Up.

Upcoming resistances: $67; $70.

Oil price trend: long term trend

Also in the long term the Oil is trying to free itself from the descending angular resistances radiated by the software in yellow.

In this case, these dynamic obstacles are not ultimately abandoned. It will be necessary to observe the quarterly closures to say it surely.

So the area in which the positive long term trend will be hindered is still $54, while the following static resistance will be in area $73.

Oil Stock Exchange software for the analysis with Gann’s technique

The analysis report of the dynamics of the Oil market has been realized thanks to the graphical support created by Top Trader© Software.

The Stock Exchange Software help not only to apply correctly the Gann’s technique but also to manage the portfolio by Hedging strategies with the Options Plain Vanilla Call and Put.

Inside the utilities it is possible to have a complete informative prospect of the Greeks and the opportunity to perform some stress tests in using a protection strategy.

It is possible thanks to the opportunity to manipulate the implied volatility model and the variation of the temporal action.

In fact, it is possible to visualize the payoff not only at the expiry but also day by day for all the residual life of the Option.