- WTI has bounced up from the 50-day MA amid signs of seller exhaustion.
- The corrective bounce could be extended further to the 50-hour average hurdle.
West Texas Intermediate (WTI) oil is trading at $59.11 per barrel, having found below the 50-day average support at $58.90 earlier today.
The bears have failed to penetrate the key average for the second time in two days.
As a result, the sell-off from Friday’s high above $65.67 looks to have run out of steam – more so, as the black gold has created consecutive candles with long tails on the 4-hour chart and the MACD histogram is charting higher lows below the zero line.
A corrective bounce to the 50-hour average at $59.47 and possibly to the hourly chart resistance at $59.77 could be in the offing.
The outlook will remain bearish as long as prices are trading below the descending 10-week average at $61.04.
Daily chart
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Trend: Corrective bounce
Technical levels
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