WTI traded higher yesterday, after it hit support near the psychological zone of 55.00, also marked by the lows of the 14th and 15th of November last year. That said, the recovery remained limited near 57.55 and then, the black liquid retreated again. The price structure continues to be of lower peaks and lower troughs below the short-term downtrend line taken from the peak of the 10th of October, as well as below the prior long-term uptrend line drawn from the low of the 21st of June last year. Therefore, we will stick to our guns that the outlook remains negative, at least for now.
If the bears are strong enough to take charge again soon, then we may see them challenging once again the key barrier of 55.00. If they manage to overcome it this time around, then we may see them pushing the price towards the 53.00 zone, marked by the inside swing high of the 28th of September 2017. That said, before the next negative leg, we see the case for some more recovery. A break above 57.55 could confirm the case and is possible to allow the price to test the 59.45 area, or the aforementioned short-term downtrend line, from where the bears may decide to shoot again.
Taking a look at our short-term oscillators, we see that the RSI bottomed within its below-30 zone, then exited than zone, and now points up. The MACD, although negative, lies above its trigger line, pointing up as well. These indicators corroborate our view that WTI could recover a bit more before, and if, sellers decide to jump in again.
In order to start examining the case of a larger recovery though, we would like to see a decisive break above 61.45. Such a move could confirm the break above the short-term downtrend line and may initially pave the way for the 63.35 resistance, the break of which could extend the rally towards 65.45, a hurdle marked by the high of the 1st of November, as well as by the inside swing low of the 30th of October.
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