WTI Crude Oil Approaches First Downside Target

by Justin Bennett  · 

May 2, 2019

by Justin Bennett  · 

May 2, 2019

by Justin Bennett  · 

May 2, 2019

Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

On April 26th, I wrote about a bearish reversal pattern on WTI.

In fact, there were two reasons to take a relatively bearish stance on crude oil this week.

The first was the bearish rejection candle on the weekly time frame. That pattern was also a rejection candle from the 64.00 region.

The second reason was the daily and weekly close below rising wedge support.

WTI crude oil broke above this wedge in early April.

However, as is often the case, the topside break of an ascending pattern didn’t last.

Then on Tuesday I pointed out the bearish pin bar below the resistance area between 63.60 and 64.50.

Crude oil spent Wednesday’s session consolidating, but Thursday saw sellers step up in a big way.

Thursday’s 61.58 close means that any retest of the 62.00/80 region will likely encounter an influx of selling pressure.

Remember that key support comes in at 60.30.

I wrote about this level last Friday and again on Tuesday.

You’ll notice how this area capped every advance in late March. The 60.30 region has served as support throughout March of last year.

A close below the 60.30 area would expose 58.20 followed by 55.40.

Alternatively, a close above 63.60 could reverse the recent bearish momentum.

But as long as the market remains below 62.80 on a daily closing basis, I favor selling WTI.

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WTI crude oil ascending channel

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