- WTI has recovered from Tuesday’s one-month low of $53.09.
- With technical indicators flashing bearish conditions, WTI’s recovery could be short-lived.
WTI oil is currently trading at $54.16 per barrel, representing 0.41% gains on the day.
The bounce from Tuesday’s one-month low of $53.09 could be short-lived, as the daily chart indicators are biased bearish. For instance, the 14-day relative strength index is holding below 50.
The MACD histogram is printing deeper bars below the zero line, signaling a strengthening of bearish momentum. The 5- and 10-day moving averages (MAs) are also trending south, indicating a bearish setup.
More importantly, the downside break of the trendline connecting Aug. 7 and Sept. 3 lows confirmed on Monday is still valid.
All-in-all, the path of least resistance remains to the downside and the bearish outlook would be invalidated above the trendline resistance, currently around $55.55.
Daily chart
Trend: Bearish
Technical levels
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