- WTI is trapped in an expanding channel on the 4-hour chart.
- Wednesday’s rejection at the channel hurdle has put the bears in the driver’s seat.
West Texas Intermediate (WTI), a North American oil benchmark, is currently trading 0.45% lower on the day near $53.00 per barrel.
The losses come a day after prices failed to take out the upper end or resistance of the 4-hour chart expanding channel identified by trendlines connecting Jan. 13 and Jan. 14 highs and lows.
The rejection at the channel hurdle is backed by lower highs (bearish pattern) on the 4-hour chart Relative Strength Index. As such, a deeper drop could be seen while heading into the weekend.
Support is located at $51.81 (Jan. 17 low), followed by $51.00 (multi-month ascending trendline support).
4-hour chart
Trend: Bearish
Technical levels
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