WTI (1H) - short term bearish bias
The US oil has been inching up along a daily trend line established since early October and the November rally seems to have come to a halt. The bearish RSI divergence was the first sign that the upside momentum had suffered casualties. Yesterday's bounce looks more like a last chance for the longs to take profit. The break of 56.30 along with a bearish MA cross was the confirmation that the crude price was turning south. We expect the aforementioned trend line to be a major support to keep the month-long rally afloat.
Key support: 55.00
Key resistance: 56.90
The US oil has been inching up along a daily trend line established since early October and the November rally seems to have come to a halt. The bearish RSI divergence was the first sign that the upside momentum had suffered casualties. Yesterday's bounce looks more like a last chance for the longs to take profit. The break of 56.30 along with a bearish MA cross was the confirmation that the crude price was turning south. We expect the aforementioned trend line to be a major support to keep the month-long rally afloat.
Key support: 55.00
Key resistance: 56.90