- WTI’s daily chart shows an increase in selling pressure.
- The black gold risks falling to lows seen Thursday.
West Texas Intermediate (WTI) crude, the North American oil benchmark, is trading 0.15% lower on the day at $40.90 per barrel.
The black gold created a classic long-tailed hanging man candle on Thursday.
The pattern indicates a sharp increase in the selling pressure – a sign of bears testing bulls’ resolve – and is considered an early sign of impending price drop, especially when it appears following a notable price gain, which is the case here. WTI has created a hanging man pattern following a rise from $36.63 to levels above $41.00
As such, the path of least resistance now appears to be on the downside. The immediate support is seen at $39.22 (Thursday’s low).
Alternatively, a close above $41.72 (Sept. 18 high) would imply a bullish breakout and open the doors for a re-test of the August high of $43.78.
Daily chart
Trend: Bearish
Technical levels
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