Going into Wednesday's European session, WTI crude oil closes around $79.00 at an intraday low. It posted its first daily loss in five days after reversing from its highest level since April 19. This reversal occurred amid overbought RSI conditions amid a five-week-long rising wedge bearish chart formation.
WTI sellers are favored by the recent downside break of an upward-sloping support line from Monday, now close to $79.20, as well as the looming bear cross on the MACD indicator.
Oil bears are well positioned to push the mid-July peak of $77.20. A convergence of the wedge's bottom line and the 50-Easiest Moving Average (EMA), near $76.70, would confirm the commodity's further downside.
In the following periods, the 200-EMA level of around $73.80 and the previous monthly low of around $67.00 will be in focus. It may, however, function as an intermediate halt at $70.00.
In terms of theoretical targets, the rising wedge is aimed at $64,000.
A break above $79.20 could again aim for successful trading beyond the $80.00 psychological magnet if the immediate support-turned-resistance line breaks to the upside.
As a result, WTI bulls will be lured by March's high of $81.05, followed by April's peak of $83.40
WTI sellers are favored by the recent downside break of an upward-sloping support line from Monday, now close to $79.20, as well as the looming bear cross on the MACD indicator.
Oil bears are well positioned to push the mid-July peak of $77.20. A convergence of the wedge's bottom line and the 50-Easiest Moving Average (EMA), near $76.70, would confirm the commodity's further downside.
In the following periods, the 200-EMA level of around $73.80 and the previous monthly low of around $67.00 will be in focus. It may, however, function as an intermediate halt at $70.00.
In terms of theoretical targets, the rising wedge is aimed at $64,000.
A break above $79.20 could again aim for successful trading beyond the $80.00 psychological magnet if the immediate support-turned-resistance line breaks to the upside.
As a result, WTI bulls will be lured by March's high of $81.05, followed by April's peak of $83.40
