Crude Oil Analysis: WTI bears challenges ascending triangle breakout above $65.40
- WTI bears in charge of the daily time frame.
- More downside with break below the ascending triangle.
- Positive MACD warns against aggressive directional bets.
Oil prices extended Wednesday's losses and poised to trade with a negative bias in the Asian session.
At the time of writing, WTI is trading at $65.22, down 0.11% on the day.
WTI daily chart
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On the daily chart, WTI has been accumulating losses near the double top formation in the vicinity of 66.50. This also coincided with a failed breakout of the asymmetrical triangle formation from the lows of $57.31.
This pattern displays the continuation of the downward movement for WTI, where the first support level is placed at $64.25 (May 4). Moving further down, bears could retest Monday’s low at $62.88, and if that happens, the price will open the gates for $62, near the 50-day Simple Moving Average (SMA).
The Moving Average Convergence Divergence (MACD) indicator is placed above the midline with an upward bias, which signifies that bulls could come back into action to touch Wednesday’s high at $66.70. WTI Prices would then target the early March highs of $67.86 (March 8).
WTI additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
