Technical analytics

WTI market technical outlook

WTI

Daily chart:

As we see, our concerns about the overbought market were not in vain. Despite the trending activity of the ADX indicator, the bulls were unable to overcome the level of $54 a barrel having got bearish close of yesterday's session on top of that. Mid-term potential of correction is quite big - up to the middle Bollinger band (49.42-50.00). However the market didn’t deliver a direct short-signal for such a tangible decline yet.

H4-chart:

Locally the market still keeps uptrend consolidating around the middle Bollinger band 52.73-53.02 before probable new upward wave. But here we also observe a steep drop of the ADX trending potential.

H1-chart:

We have flat intraday dynamics. It looks like the asset will spend the whole session inside the lower Bollinger bands (52.53-53.10).

Conclusions:

Main scenario: Flat in the 52.53-53.10 range.

Alternative scenario: Short-term upward momentum to 54.00 followed by a new decline of the price.

Trading recommendations:

Short-term trades in the 52.53-53.10 channel.

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