FxWirePro: Active bears in WTI crude breach ascending triangle supports, interim price dips backed by both leading and lagging oscillators

Interim bearish swings in consolidation phase are coupled by both leading and lagging oscillators.

As stated in our previous post, WTI crude price has been tumbling through ascending triangle support (on the weekly chart) showing momentum in price declines after the formation of a bearish candle with lo the g real body.

Bears have been plummeting prices consistently below 7DMA despite dragonfly doji, more dips likely on bearish DMA crossover.

RSI evidences the downward convergence to the price declines. While stochastic curves have been indecisive but bearish bias.

To substantiate this bearish stance, weekly MACD on both timeframes signals upswings to extend further.

But on the flip side, it’s been in the consolidation phase from last more than a year or so, you could very well figure out that the every attempt of the upswing is likely to show the failure swings as and when it approach triangle resistance.

Hence, we don’t encourage long-term short build ups hereafter; instead, we encourage momentary shorts in WTI crude of near-month expiries for targets of $47.48 levels with strict stop loss of $50.15 levels, thereby, the trade carries attractive risk reward ratio.