Short short short..! We kept urging by saying don't jump into the guns having bullish mindset.
The technicals for this commodity bolster heaps of selling indications.
We spotted out the series of bearish indications are alarming us, the current price has fallen below 10DMA curve.
Gap down sustained after the formation of shooting star pattern.
The attempts of WTI crude to breach resistance at 43.20 levels failed which tested this level as crucial point of demand several times in the past (see blue colored circled areas). So we understand, at current stage such demand for this commodity is not seen.
In a long term, firstly, when major trend has been downtrend with a bottoming up at 37.75 areas, retreated almost to 49.60 levels (which is exactly 50% retracements from the bottom).
From then we believe the price valuations could not sustain in the major downtrend (see shooting star formation to push back the prices), as a result it has again showed declines decisively (see volume build ups).
As the prices tends to bounce volumes were shrugging off which would mean that upswings were not generating genuine bullish trend.
RSI is still signaling downward convergence with the slumping prices (currently RSI 14 trending at 46.5421 while articulating).
Most probable scenario: Considering above technical reasoning, it would certainly drag back to 39.90, if it manages to break below this level decisively then 37.75 is also possible in the weeks to come. For now, we are bearish on this commodity and advisable to sell on every rally.
The technicals for this commodity bolster heaps of selling indications.
We spotted out the series of bearish indications are alarming us, the current price has fallen below 10DMA curve.
Gap down sustained after the formation of shooting star pattern.
The attempts of WTI crude to breach resistance at 43.20 levels failed which tested this level as crucial point of demand several times in the past (see blue colored circled areas). So we understand, at current stage such demand for this commodity is not seen.
In a long term, firstly, when major trend has been downtrend with a bottoming up at 37.75 areas, retreated almost to 49.60 levels (which is exactly 50% retracements from the bottom).
From then we believe the price valuations could not sustain in the major downtrend (see shooting star formation to push back the prices), as a result it has again showed declines decisively (see volume build ups).
As the prices tends to bounce volumes were shrugging off which would mean that upswings were not generating genuine bullish trend.
RSI is still signaling downward convergence with the slumping prices (currently RSI 14 trending at 46.5421 while articulating).
Most probable scenario: Considering above technical reasoning, it would certainly drag back to 39.90, if it manages to break below this level decisively then 37.75 is also possible in the weeks to come. For now, we are bearish on this commodity and advisable to sell on every rally.
