WTI Price Analysis: Prints rising wedge on hourly chart beyond $40.00
- WTI eases from $40.72 during the initial hour of trading.
- Repeated failures to stay positive beyond $41.00 keep sellers hopeful.
- A confirmation of the bearish chart pattern highlights $39.40 support confluence.
WTI slips from $40.72 to $40.63 during the early Asian session on Tuesday. The black gold refreshed a two-week high the previous day but marked another pullback from $41.00. In doing so, the energy benchmark portrays a bearish formation, rising wedge, on the hourly chart.
Given the quote’s multiple U-turns from $41.00, coupled with a downside suggesting chart pattern, sellers await a clear break below $40.36 to take fresh entries.
Following a sustained trading past-$40.36, a confluence of 200-HMA and 50% Fibonacci retracement of June 23-25 fall, around $39.40, will be in the spotlight.
Should there be a clear downside below $39.40, June 24 top near $38.60 and June 24 low near $37.60 might offer intermediate halts before dragging oil prices to the previous month’s bottom close to $34.50/45.
Meanwhile, the mentioned bearish formation’s upper line around $41.15 can offer immediate resistance ahead of June month’s top near $41.65.
It should, however, be noted that the bulls’ ability to cross $41.65 enables them to challenge February month low around $44.00.
WTI hourly chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
