A barrel of West Texas Intermediate (WTI) crude, the North American oil benchmark, is currently changing hands near $52.82. Oil is trading largely unchanged on the day, having faced rejection near $54.00 on Wednesday.
According to the bearish divergence of the 4-hour chart Relative Strength Index (RSI), the pullback from Wednesday’s high could be extended to the 4-hour chart 50-candle Simple Moving Average (SMA) support, currently at $52.15.
A violation there would expose the higher low of $51.50 created on the 4-hour chart on Jan. 11.
A move above $53.40, the high of the right shoulder of the 15-minute chart head-and-shoulders pattern, would open the doors for a re-test of $53.93 (Jan. 13 high).
Trend: Bull market pullback