WTI Price Analysis: Under pressure, Wednesday's close pivotal
- WTI created a Doji candle on Tuesday, indicating indecision in the market.
- A close above Tuesday's high if needed to confirm a bullish revival.
The West Texas Intermediate (WTI) crude, a North American oil benchmark, currently trades near $41.41 per barrel, representing a 0.10% decline on the day.
On Tuesday, oil witnessed two-way business and ended the day on a flat note, forming a Doji candle, a sign of indecision in the market. In other words, both bulls and the bears are unwilling to lead the price action.
As such, the focus now is on Wednesday's close. Acceptance above the Doji candle's high of $41.69 would imply the period of indecision has ended with a bull victory and open the doors to $43.06 (Nov. 11 high). A violation there would expose the 2020 high of $43.78.
Alternatively, a close under the Doji candle's low of $40.57 would confirm a bearish reversal and shift risk in favor of a drop to the 200-day simple moving average (SMA) located at $36.28.
Daily chart
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Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
