WTI Uptrend Decisively Broken - Look to Sell the Rally
West Texas Intermediate WTI USOIL
WTI fell exactly 50c short of the upside maximum target
before topping out and falling below the the lower parallel,
thereby flipping WTI from still positive to negative - on a
dime. Since then it's fallen away seeking support from nearest
structure to left - and found it at 58.14 - the top of the
structure to left. It's been hit by a double whammy of rising
DXY and falling major markets. Although it's hit support and
can rally as high as 61.51 from here this decline is not done
yet. Those big reds on exit of the parallel show powerful
rejection now. Last week's price action has switched the game
from buying dips to selling rallies once more. And if major
markets begin to unravel and fall further from their lows of
last week WTI and Brent will follow suit in sympathy.
A fall below 58.10 on WTI should trigger further selling back
to 55.90 at least and once this fails to 54.95, spiking as low as
53.84. The 50% retracement of the bull run lies at 54.32. Look
to sell the early rally if we see one - and if not sell on break
below 58 with stops above 59.10.
WTI fell exactly 50c short of the upside maximum target
before topping out and falling below the the lower parallel,
thereby flipping WTI from still positive to negative - on a
dime. Since then it's fallen away seeking support from nearest
structure to left - and found it at 58.14 - the top of the
structure to left. It's been hit by a double whammy of rising
DXY and falling major markets. Although it's hit support and
can rally as high as 61.51 from here this decline is not done
yet. Those big reds on exit of the parallel show powerful
rejection now. Last week's price action has switched the game
from buying dips to selling rallies once more. And if major
markets begin to unravel and fall further from their lows of
last week WTI and Brent will follow suit in sympathy.
A fall below 58.10 on WTI should trigger further selling back
to 55.90 at least and once this fails to 54.95, spiking as low as
53.84. The 50% retracement of the bull run lies at 54.32. Look
to sell the early rally if we see one - and if not sell on break
below 58 with stops above 59.10.