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.

Omkar Godbole FXStreet Contributor

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

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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