WTI Price Analysis: Bears move in on the low hanging fruit, eye $78.00 after bullish correction
|- WTI bulls are moving in from the lows and eye the 38.2% ratio.
- Bears look for a discount to run deeper towards $78.00.
As per the prior analysis, WTI bears are pressuring the bulls below critical resistance, break of $84.00 on the cards, and the price of oil dropped on Thursday into low-hanging fruit below 84.00 following a build-up of longs.
WTI prior analysis
The price was shown to be on the back side of the monthly trendline and was being rejected on a restest:
The price was looking to be on the verge of completing an M-formation below the locked-in highs below horizontal resistance:
A bearish H&S pattern had emerged on the daily chart with the right-hand shoulder on the backside of the micro trendline:
Zoomed in:
A move below $84 the figure was required to shift the bias fully:
WTI update
As illustrated, the price has indeed followed the projected trajectory on Thursday. Bears can now target lower into the origin of the prior bullish trend:
WTI H1 chart
From an hourly perspective, drawing the expansion of the prior consolidative range, a full 100% measured move aims for a test of $78.00. However, a correction could be in order given the Grab harmonic pattern. A 38.2% Fibonacci retracement of the bearish impulse comes in near $82.90.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.