WTI Crude chart
The daily bar chart pattern of WTI Crude oil attempted a weak rally that briefly crossed the 50 level, but faced strong resistance from the falling 20 day EMA. Oil’s price has consolidated sideways in a range between 45-50 for most of this month, but looks ready to fall further.
Daily technical indicators have corrected oversold conditions, but their upward momentum is already coming to an end. MACD is rising above its signal line but remains well inside its oversold zone. RSI emerged from its oversold zone, but is sliding down. Slow stochastic has re-entered its oversold zone.
Oil’s price is trying to find a bottom at 45, but bears appear to be tightening their grip.
On longer term weekly chart (not shown), oil’s price is trading far below its three weekly EMAs in a long-term bear market. Weekly technical indicators are deep inside their respective oversold zones. There is no sign of a reversal of the bear market as yet.
Brent Crude chart
The daily bar chart pattern of Brent Crude oil has been consolidating sideways in a range between 47-52 since the beginning of this month. However, the entire trading has occurred below the three falling daily EMAs in a bear market.
Daily technical indicators have corrected oversold conditions. In fact, MACD and RSI have formed ‘double bottom’ reversal patterns inside their respective oversold zones. But that has not inspired bullish possibilities.
MACD is rising above its signal line, but remains inside its oversold zone. RSI failed in its attempt to climb out of its oversold zone. Slow stochastic has just managed to emerge from its oversold zone.
On longer term weekly chart (not shown), all three weekly EMAs are falling, and oil’s price is trading well below them in a long-term bear market. Technical indicators are deep inside their respective oversold zones. Bears may resume their selling soon.