WTI Price Analysis: Teases head-and-shoulders confirmation on 4H, focus on $71.00
- WTI bounces off intraday low, from the neckline of bearish formation.
- MACD condition, sustained break of 200-SMA favor sellers.
WTI consolidates weekly losses while picking up bids around $71.70, up 0.30% intraday, during early Friday.
In doing so, the black gold takes a U-turn from the support line of a bearish chart pattern, head-and-shoulders, on the four-hour (4H) chart. Even so, the 200-SMA breakdown and downbeat MACD signal further downside of the energy prices.
Hence, bears should wait for a clear downside break of $71.00 to aim for late May’s low around $65.00.
During the fall, the $70.00 threshold and the early June’s wing lows near $68.30–35 could test the commodity’s downside.
Meanwhile, a clear break of the 200-SMA level of $72.00 will highlight the $72.50 and $74.30 resistances.
However, WTI bulls may remain cautious until the quote stays below the $75.00 hurdle.
Overall, oil buyers seem to have tired and a confirmation of the bearish chart pattern can trigger the much-awaited pullback in prices.
WTI: Four-hour chart
Trend: Further weakness 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.
