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.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
