WTI Price Analysis: Teasing a rising wedge breakdown on 4H chart


  • The US oil resumes correction from seven-year highs of $84.97.
  • WTI is on the verge of confirming a rising wedge breakdown on the 4H chart.
  • 50-SMA support at $82.73 holds the key, as RSI flips bearish.

WTI (NYMEX futures) is back in the red so far this Wednesday, reversing Tuesday’s temporary reversal, as the bears look to resume the corrective decline from seven-year peaks of $84.97.

At the time of writing, the US oil is trading at $83.13, down about 1% on the day, heading towards the next critical support of the upward-sloping 50-Simple Moving Average (SMA) on the four-hour chart at $82.73.

The overnight weakness is extending into the European session, as WTI breached the 21-SMA cap at $83.47.

The black gold now teases a rising wedge breakdown on the said time frame, with a four-hourly candlestick closing below the rising trendline support at $83.23 needed to confirm the downside breakout.

Should the bears succeed, the immediate support is seen at 50-SMA, below which the $81 round figure could be tested.

The next fierce support awaits at the October 21 lows of $80.06.

The Relative Strength Index (RSI) has pierced through the midline, flipping into the bearish zone, suggesting that the further downside remains on the cards.

WTI: Four-hour chart

On the flip side, any recovery attempt will meet the initial hurdle at the 21-SMA, the previous support now resistance.

The buyers will then look for fresh entries towards $84.42, October 26 highs. Further up, the upswing could extend towards multi-year tops of $84.97.

WTI: Additional levels to watch

WTI

Overview
Today last price 83.22
Today Daily Change -0.83
Today Daily Change % -0.99
Today daily open 84.05
 
Trends
Daily SMA20 79.97
Daily SMA50 73.61
Daily SMA100 72.4
Daily SMA200 67.03
 
Levels
Previous Daily High 84.43
Previous Daily Low 82.66
Previous Weekly High 83.92
Previous Weekly Low 80.61
Previous Monthly High 76.51
Previous Monthly Low 67.02
Daily Fibonacci 38.2% 83.75
Daily Fibonacci 61.8% 83.33
Daily Pivot Point S1 83
Daily Pivot Point S2 81.94
Daily Pivot Point S3 81.23
Daily Pivot Point R1 84.77
Daily Pivot Point R2 85.48
Daily Pivot Point R3 86.54

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.

EUR/USD News

GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.

GBP/USD News

Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures