- As per yesterday’s analysis, the price of WTI did indeed run down to test the vicinity of the 50 4HR SMA having been sold at the rising resistance line.
- WTI has pierced the 61.8% Fibo in the 63.70s with 4HR stochastics heading towards oversold territory, albeit still with room to go.
- A daily close below the 61.8% Fibo and the bears will have successfully overtaken bulls for the day and possibly for the next few periods; (Ideally, a close below the 8th April’s low would seal the deal and open the case for 61.80).
- Bears will look for a test all the way to the 200-D SMA – (61.20) and 100 4HR SMA at 61 the figure to negate the upside bias.
- If the 200-DMA gives out, bears can target below 61 the figure for a run to the rising wedge’s support line.
- A break of the support line and below $57.80 opens the case for a continuation of the bear trend that would target below the $42 handle and late Dec lows.
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