WTI technical analysis: Mildly bid above $54, bias remains bearish
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WTI technical analysis: Mildly bid above $54, bias remains bearish

  • WTI has recovered from Tuesday’s one-month low of $53.09.  
  • With technical indicators flashing bearish conditions, WTI’s recovery could be short-lived.  

WTI oil is currently trading at $54.16 per barrel, representing 0.41% gains on the day.  

The bounce from Tuesday’s one-month low of $53.09 could be short-lived, as the daily chart indicators are biased bearish. For instance, the 14-day relative strength index is holding below 50.  

The MACD histogram is printing deeper bars below the zero line, signaling a strengthening of bearish momentum. The 5- and 10-day moving averages (MAs) are also trending south, indicating a bearish setup.  

More importantly, the downside break of the trendline connecting Aug. 7 and Sept. 3 lows confirmed on Monday is still valid.  

All-in-all, the path of least resistance remains to the downside and the bearish outlook would be invalidated above the trendline resistance, currently around $55.55.

Daily chart

Trend: Bearish

Technical levels


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