WTI technical analysis: Down 0.40%, charts favor upside

WTI oil is looking north with falling channel breakout on the daily chart.
A break above $56 could be seen during the day ahead.

Omkar Godbole FXStreet Contributor

WTI oil is currently trading at $55.50 per barrel, representing 0.40% losses on the day.

The decline, however, could be short-lived and prices could rise well above $56.00 during the day ahead, as the daily chart is reporting a falling channel breakout.

The black gold closed at $55.69 on Tuesday, confirming an upside break of a bearish channel represented by trendlines connecting the July 15 and July 31 highs and July 18 and Aug. 7 lows.

That channel breakout indicates the sell-off from the July 15 high of $60.89 has ended and the bulls have regained control.

Further, the black gold created a bullish marubozu candle on Tuesday, validating the spinning bottom candle (an early sign of bull reversal) created on Monday.

All-in-all, the path of least resistance is now to the higher side. The bullish case would weaken if black gold drops below Tuesday's low of $53.71.

Daily chart

Trend: Bullish

Pivot points

1. R3 58.32
2. R2 56.98
3. R1 56.32
PP 54.98
1. S1 54.32
2. S2 52.98
3. S3 52.32

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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