WTI Price Analysis: The psychological $40.00 level looks to be the target once again

Spot WTI 4-hour chart

WTI has retraced from the highs seen on this 4-hour chart but it looks like the bulls could be regaining control once again. It seems like the price pattern below is a classic trend continuation pattern and a break of USD 40.00 per barrel could confirm that. 

There is a bigger chart pattern in play with the purple lines. This is an ascending wedge formation and a break in either direction could help us determine the future path of spot WTI. This could also mean if the price moves higher the top of the pattern could be a resistance zone. 

On the downside, there are two prominent support levels. First up is the black line at USD 37.35 per barrel. This level is the previous wave low and if the price moved down from here it would make a lower high lower low pattern. Beyond that the green line just below USD 35.00 per barrel is slightly stronger. The level has been used as a support or resistance level at least four times. 

The indicators are both looking positive. The MACD histogram is in the green and the signal lines are just crossing over. The Relative Strength Index is holding above the 50 mid-line. On the higher timeframes, the chart still looks like a bullish one and now if there is a break and close above USD 40.00 per barrel level it would be seen as a postive sign. 

Additional levels