- WTI is headed for a test of the 200-D MA.
- Bulls need a break of the rising wedges resistance or risk will revert to a potentially heavy breakout to the downside.
- Bulls may find offers around 61.90, 2018 April’s solid lows and touch above the 200-D SMA.
- to the downside, a subsequent break below $57.80 could be the straw that broke the bulls back and, subsequently, would equate for a continuation of the bear trend that would target below the $42 handle and late Dec lows.
- The price could drop by at least the height of the wedge (measured at the base where the two trendlines start) which is around $12.00 for a target of $47.00.
- First up, bears will look to the $58.00 support/21-D SMA ahead of $55.50 (monthly pivot point) and the 38.2% Fibo meeting cloud support.
- Daily stochastics still lean with a bearish bias, now with a bearish divergence given Friday’s high was not met by a fresh high in momentum readings.
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