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.
I wrote about a potential turn lower for WTI on Friday.
The weekly bearish engulfing candle hinted at exhaustion from buyers. And the fact that it occurred below the 64.00 handle certainly helped.
Additionally, WTI had closed the day and week back below a rising wedge that’s been in place since last December.
All in all, things looked relatively bearish for WTI crude oil.
Buyers managed to claw back some losses on Monday. However, Tuesday’s bearish rejection candle illustrates how 63.60 is serving as new resistance.
Remember that the 63.60 area is the same one I pointed out on Friday.
I also wrote about it in Sunday’s forecast.
That said, buyers would ideally need a daily close above the rising wedge you see below to reverse the bearish outlook.
In other words, they would need a close above the 64.50 region to revitalize the uptrend that began last December.
I will remain bearish WTI while below 64.50 on a daily closing basis.
Key support from here comes in at the 60.30 handle followed by 58.20.
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