WTI Price Analysis: Under pressure after hanging man candle


  • WTI's daily chart shows an increase in selling pressure. 
  • The black gold risks falling to lows seen Thursday. 

West Texas Intermediate (WTI) crude, the North American oil benchmark, is trading 0.15% lower on the day at $40.90 per barrel.

The black gold created a classic long-tailed hanging man candle on Thursday. 

The pattern indicates a sharp increase in the selling pressure – a sign of bears testing bulls' resolve – and is considered an early sign of impending price drop, especially when it appears following a notable price gain, which is the case here. WTI has created a hanging man pattern following a rise from $36.63 to levels above $41.00

As such, the path of least resistance now appears to be on the downside. The immediate support is seen at $39.22 (Thursday's low). 

Alternatively, a close above $41.72 (Sept. 18 high) would imply a bullish breakout and open the doors for a re-test of the August high of $43.78. 

Daily chart

Trend: Bearish

Technical levels

WTI

Overview
Today last price 40.9
Today Daily Change -0.30
Today Daily Change % -0.73
Today daily open 41.2
 
Trends
Daily SMA20 40.06
Daily SMA50 40.82
Daily SMA100 40.25
Daily SMA200 38.93
 
Levels
Previous Daily High 41.56
Previous Daily Low 39.51
Previous Weekly High 41.68
Previous Weekly Low 37.13
Previous Monthly High 43.56
Previous Monthly Low 36.43
Daily Fibonacci 38.2% 40.3
Daily Fibonacci 61.8% 40.78
Daily Pivot Point S1 39.95
Daily Pivot Point S2 38.71
Daily Pivot Point S3 37.9
Daily Pivot Point R1 42
Daily Pivot Point R2 42.81
Daily Pivot Point R3 44.05

 

 

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