- WTI is threatening a break-out of the rising wedge.
- A bears trap is between today’s lows and $57.80 which may hold and see bulls step back in for the price to only flip back towards the 200-DMA/ a break up the other way.
- However, the rising wedge is a bearish continuation pattern and wedges can be significant turning points.
- In this case, a break and continuation of the bear trend would target below the $42 handle and late Dec lows – (Wedge breakouts can see the price run in the breakout direction for long periods of time).
- 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.
- Initially, the price would 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 supports a bearish bias as well.
- A stop-loss either above the rising wedge resistance or 200 DMA would limit losses to either above the resistance towards the 200-DMA and/or beyond.
WTI Daily chart shows bearish stochastic, rising bearish wedge, 38.2% Fibo target if 58 bear trap support broken, daily cloud support confluence and 1200 point target to $47 handle.
Share
